By Terry Barrett, Tax Senior Manager | Keiter State and Local Tax Team
It’s almost time for the annual accelerated sales tax payments to the Virginia Department of Taxation. Dealers whose sales were $2.5 million or more for the twelve-month period ending June 30, 2015, are required by law to make accelerated sales and use tax payments in June 2016. Each dealer meeting the threshold is required to make a payment in June equal to 90 percent of its retail sales and use tax liability for June 2015. The dealer then may take a credit for the amount of the accelerated payment on its payment for June 2016 which is due July 20.
Both sales tax collected and use tax due are considered in whether the dealer meets the threshold filing requirement. In addition, taxable sales or purchases are computed without regard to the number of certificates of registration or locations of the dealer. It is noteworthy that persons who are required to file only Consumer Use Tax Returns, the Form ST-7, are not subject to the accelerated tax provisions. The Department of Taxation will send out reminders to affected dealers.
Payments of the accelerated tax must be made before June 30 if paying by electronic funds transfer; however, if payment is made by another method, the payment must be made on or before June 27. A dealer must use the payment method currently used for its routine sales and use tax payments.
Source: Virginia Department of Taxation website
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.