Who must pay
Dealers whose taxable sales totaled $2.5 million or more for the 12-month period ending June 30, 2016 are required to make an accelerated retail sales and use tax payment in June 2017.
In early May, we mail letters to all business locations of dealers that meet the $2.5 million threshold. In early June, we will mail notifications to dealers with the specific amount of the tax owed and instructions for making the payment. If a business location has a tax liability of $25 or less, that location will not receive a notification.
Call us if your business meets the accelerated sales tax payment criteria and did not receive a letter, or if you received a duplicate voucher by mistake.
How much tax will your business owe
The accelerated sales payment is based on aggregate sales and purchases for all business locations, regardless of whether you file separate, combined, or consolidated returns.
If your business meets the threshold, you are required to pay 90% of the sales tax you owed for the month of June 2016, minus the applicable dealer’s discount and prepaid wireless fee for that month.
How to file and pay
You are required to file and pay electronically by June 30, 2017 unless you have already been granted an electronic filing waiver.
- Business Online Services Account - When you log in, you will be provided with instructions about making the accelerated sales tax payment. You can schedule the payment in advance for June 30, 2017. If you’re a new user, you will first need to enroll using your 15-digit tax account number, zip code of your business mailing address, and the total amount due on the most recently filed return.
- eForms - Use eForm ST-APC. eForms are similar to the paper versions of returns. No login or password is required.
- ACH Credit - Contact your financial institution to make arrangements to credit the state’s bank account with funds from your bank account. Ask your financial institution about its ACH origination services and any costs. Check your bank’s schedule for payment processing to be sure your payment is received by June 30, 2017, and tell your bank to identify the payment for the period ending June 30, 2017. For more information about using ACH Credit, see our Electronic Payment Guide.
If you already have an electronic filing waiver, mail your check and payment voucher(s) by June 26, 2017 to:
Virginia Department of Taxation
PO Box 26627
Richmond, VA 23260-6627
Payments are due:
- June 30, 2017 for electronic payments
- Checks must be postmarked on or before June 26, 2017
After making the accelerated payment, you should file your regular June return by July 20, 2017, and pay any difference between the actual June 2017 liability and the accelerated payment. If there is any remaining overpayment after the July payment, we will refund the amount.
See Guidelines for the Accelerated Sales Tax Payment for more details.
Penalty for late payment
We will disable all accelerated sales tax payment options after June 30, 2017. If you do not make your payment on time, you will be subject to a 6% penalty on any late or unpaid accelerated sales tax payment. If you miss the deadline, you should file your June return as usual, and we will mail you a bill in August for any penalty owed. If you don’t pay the penalty bill on time, interest will begin to accrue.
For example, if you are required to make an accelerated payment of $10,000 in June 2017 but do not make the payment on time, you will receive a one-time penalty assessment for $600 ($10,000 x 6%). If you do not pay the $600 penalty by the date stated on the bill, interest will start to accrue.
If you pay less than the amount due, the 6% penalty will apply to the underpayment. For example, if the required accelerated payment amount is $10,000 and you pay only $8,000 by the due date, the penalty will apply to the underpayment of $2,000. You will be assessed $120 ($2,000 x 6%).
If you’re not able to make the required accelerated sales tax payment, you may request an undue hardship waiver. You must provide written documentation and financial records that clearly demonstrate how making the payment would cause undue hardship.
Examples of undue hardship include:
- You have had a substantial decline in sales since the previous June
- You are selling or closing a significant part of the business
- You are an out-of-state dealer who no longer makes sales in Virginia
Generally, if you can show an undue hardship, you will be allowed to make an accelerated sales tax payment equal to 90% of the average monthly retail sales and use tax liability for the first quarter of the current calendar year. We only grant a full waiver of the required payment in extraordinary circumstances.
Submit applications for hardship waivers no later than June 8, 2017 to:
Virginia Department of Taxation
PO Box 5771
Richmond, VA 23220-0771