Get Ready! Virginia Sales and Use Tax Changes
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Get Ready! Virginia Sales and Use Tax Changes. Moderator: Clare Dunn Office of Customer Services. Presenter: Lee Mikelson Director, Business & Analytic Services Division. House Bill 2313. Effective July 1, 2013 0.3 % increase Statewide 0.7 % increase Northern Virginia

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Get Ready! Virginia Sales and Use Tax Changes

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Get ready virginia sales and use tax changes

Get Ready! Virginia Sales and Use Tax Changes

Moderator: Clare Dunn

Office of Customer Services

Presenter: Lee Mikelson

Director, Business & Analytic Services Division


Get ready virginia sales and use tax changes

House Bill 2313

Effective July 1, 2013

0.3 % increase Statewide

0.7 % increase Northern Virginia

and Hampton Roads


Get ready virginia sales and use tax changes

Statewide Increase

0.3%

Regional Increase

0.7%

Retail Sales and Use Tax

General State Sales & Use Tax Rate4.3%

Local State Sales & Use Tax Rate1.0%

Total5.3%

General State Sales & Use Tax Rate4.3%

Local State Sales & Use Tax Rate1.0%

Regional Sales & Use Tax Rate.7%

Northern VA and Hampton Roads Regions Total Tax6.0%

Vending Machine Sales and Use Tax

General State Sales & Use Tax Rate5.3%

Local State Sales & Use Tax Rate1.0%

Total6.3%

General State Sales & Use Tax Rate5.3%

Local State Sales & Use Tax Rate1.0%

Regional Sales & Use Tax Rate.7%

Northern VA and Hampton Roads Regions Total Tax7.0%

Retail Qualifying Food Sales

State Qualifying Food Sales Tax Rate1.5%

Local State Sales & Use Tax Rate1.0%

Total2.5%

NO CHANGE

State Qualifying Food Sales Tax Rate1.5%

Local State Sales & Use Tax Rate1.0%

Northern VA and Hampton Roads Regions Total Tax 2.5%


Get ready virginia sales and use tax changes

New Regional Sales & Use Tax

Northern VirginiaRegion

Hampton Roads

Region

* Counties not subject to the regional retail sales and use tax as originally presented in the webinar. While both counties are members of the Planning District 23 Commission that is impacted by the additional tax, neither county is located within the planning district. See Virginia Tax Bulletin VTB 13-8 .


Get ready virginia sales and use tax changes

Revised Forms

Form ST-9 for in-state sales

Form ST-8 for out-of-state use

Form ST-7 for business consumer use

Form VM-2 for vending machine sales

Form ST-6 for direct payment permits


Get ready virginia sales and use tax changes

Sourcing

What is a locality?

What does sourcing mean?

What is an in-state sale?

What is an out-of-state sale?


Get ready virginia sales and use tax changes

  • What is a Locality?

  • Cities are independent of counties

  • 133 cities and counties as of July 1, 2013

  • Cities + Counties = Localities

  • Each locality has a unique FIPS code

  • Only cities and counties may impose local sales and use tax


Get ready virginia sales and use tax changes

  • What does sourcing mean?

  • Every sale must be assigned, or sourced, to a Virginia locality.

  • The 1% local sales and use tax is distributed to the sourced locality.

  • Sourcing depends on:

  • In-state sale

  • or

  • Out-of-state sale


Get ready virginia sales and use tax changes

  • What is an in-state sale?

  • The seller/dealer has physical presence in Virginia, and

  • The purchaser is located in Virginia

  • In-state Sales Sourcing Rule

  • Source to the locality in which your business is located.

  • If located in the Northern Virginia or Hampton Roads regions, charge the additional regional tax.

  • If NOT located in the Northern Virginia or Hampton Roads regions, do not charge the additional regional tax.


Get ready virginia sales and use tax changes

  • What is an out-of-state sale?

  • The dealer either has no physical presence in Virginia, or

  • The dealer has physical presence in Virginia but has sales originating outside of Virginia

  • The purchaser is located in Virginia

  • Out-of-state Sales Sourcing Rule

  • Source to the locality where the item is being delivered.

  • If delivering in the Northern Virginia or Hampton Roads regions, charge the additional regional tax .

  • If NOT delivering in the Northern Virginia or Hampton Roads regions, do not charge the additional regional tax.


Get ready virginia sales and use tax changes

Sourcing 101

#1

#2


Get ready virginia sales and use tax changes

  • Use our FIPS Code Lookup Tool to determine:

  • Where your business location is, or

  • The locality of an address you are mailing to

  • Let’s take a look at the tool!


Get ready virginia sales and use tax changes

Remember – details and examples are provided in the HB 2313 Guidelines


Get ready virginia sales and use tax changes

  • Reporting Requirements

  • Form ST-9 In-state Dealers

  • 93%

  • Single-Locality Filer

  • 2%

  • Consolidated Filer

  • 5%

  • Non-Fixed Filer

  • Form ST-8 Out-of-State Dealers


Get ready virginia sales and use tax changes

  • Transitional Rules


Get ready virginia sales and use tax changes

  • Contracts – General Rule

  • Before April 3, 2013 – Delivered September 30, 2013

  • Entitled to Request Refund


Get ready virginia sales and use tax changes

  • Bona Fide Real Estate Construction Contracts

  • Contract entered into before April 3, 2013

  • Must have finished plans and specifications


Get ready virginia sales and use tax changes

  • Tangible Personal Property (installment sales/layaway purchase)

  • Before April 3, 2013 – Redeemed by September 30, 2013

  • Entitled to Request Refund


Get ready virginia sales and use tax changes

  • Leases

  • Lease/rental agreement entered into before April 3, 2013

  • Leased property must be delivered to lessee by September 30, 2013


Get ready virginia sales and use tax changes

Final Questions


Get ready virginia sales and use tax changes

Get Ready! Virginia Sales and Use Tax Changes

Live Chat: http://www.tax.virginia.gov/

Telephone: (804) 367-8037


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