Virginia Retail Federation (VRF) was challenged to convince the Virginia General Assembly of the negative impact the Governor’s budget proposal pertaining to the “Accelerated Sales Tax” (AST) would have on retailers. AST requires businesses to pay one month’s sales taxes early and currently applies to businesses with $26 million in annual sales.
Effective July 1, 2015, the newly adopted State budget lowered the AST threshold to businesses with $2.5 million in annual sales. This will dramatically impact over 4,000 additional small retailers who will now be required to pay AST. This means that a business with $2.5 million in annual sales tax must pay 90% of their anticipated monthly sales tax for June before those taxes have been fully collected. Under current procedure, collected sales taxes are due the next month. Even though the state budget goes into effect July 1,2015, the law requires retailers to estimate taxes and submit in June of 2015. The accelerated payment requirement applies only to the month of June. However, this means that many retailers will have to pay double taxes in June 2015: both the actual taxes due for May sales and the estimated taxes due for June sales. If a retailer overpays taxes the June taxes, the overpayment will result in a credit for their July. It will not result in a refund.
For more information you may vist the Tax Department's website at http://www.tax.virginia.gov/content/accelerated-sales-tax.
Contact a member of our lobbying team with any questions.
Effective July 1, 2015, all three of Virginia’s Sales Tax holidays will be consolidated into one. The combined tax holiday will be held from August 7 – 9, 2015 and will apply to items previously covered in the Hurricane Preparedness, Back to School, and Energy Star/Water Sense Tax Holidays.
Items that are required to be tax free during this three day holiday include:
- School supplies ($20 or less), clothing and footwear ($100 or less)
- Energy Star and WaterSense items ($2,500 or less)
- Hurricane and emergency equipment (portable generators $1,000 or less and many more items)