Reminder to Manufacturers and Retailers: Virginia Apportionment Changes Are Here

Reminder to Manufacturers and Retailers: Virginia Apportionment Changes Are Here

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By: Ryan Beethoven-Wilson, CPA

The next phase of apportionment changes in Virginia is coming for manufacturers and retailers whose fiscal years begin after July 1, 2014.  As a reminder, manufacturers now have the ability to elect a phase-in of single sales apportionment over three total taxable years.  Retailers on the other hand, are now required to use the phase-in of single sales apportionment.

For example, if a calendar-year manufacturer has elected the phase-in of single sales factor apportionment, by filing a Virginia return with triple-weighted sales for 2013 and plan to file a return with quadruple-weighted sales for 2014, the manufacturer can apportion income using a single-sales factor on its 2015 Virginia return.  Again, the determining factor is when the taxpayer’s tax year begins.

Retailers are required to apportion income using quadruple-weighted sales for tax years beginning after July 1, 2014, and will be able to apportion income using a single-sales factor in tax years beginning after July 1, 2015.

Links to last year’s articles and further information on Virginia’s apportionment changes can be found here for manufacturers and here for retailers.

The instructions for Virginia Forms 500A and 502A are also a good place to turn for guidance.  As always, please contact your Keiter representative with any questions or for further assistance.

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About the Author

Ryan’s practice focuses on business tax planning and compliance, general business consulting, financial reporting, and individual tax for privately-held clients in the professional services, emerging business, manufacturing, construction, retail, and real estate industries among others. Ryan also helped launch Keiter’s Opportunity Zone team, monitoring developments and consulting with investors and entrepreneurs on OZ tax incentives. Ryan serves on several of Keiter’s industry niche teams and is active on the Firm’s recruiting and workflow committees.

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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.


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