Virginia Law Clarifies Definition of Gross Proceeds for Sales Tax
- Sales Tax News
- Apr 9, 2015 | Gail Cole
A new Virginia law clarifies the definition of “gross proceeds” with respect to sales and use tax.
Chapter 252 takes effect on July 1, 2015. It reads, in pertinent part:
“’Gross proceeds’ does not include finance charges, carrying charges, service charges, or interest from credit extended on the lease or rental of tangible personal property under conditional lease or rental contracts or other conditional contracts providing for the deferred payments of the lease or rental price.”
Therefore, the finance charges, carrying charges, service charges, and interest from credit (as defined above) are not subject to sales tax.
A few small lines of text can have a big impact on sales tax. Implementing automated sales tax Software-as-a-Service simplifies transaction tax management and increases compliance for businesses in all states. Learn how it works.