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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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Presentation Transcript
slide1
Get Ready! Virginia Sales and Use Tax Changes

Moderator: Clare Dunn

Office of Customer Services

Presenter: Lee Mikelson

Director, Business & Analytic Services Division

slide3
House Bill 2313

Effective July 1, 2013

0.3 % increase Statewide

0.7 % increase Northern Virginia

and Hampton Roads

slide4
Statewide Increase

0.3%

Regional Increase

0.7%

Retail Sales and Use Tax

General State Sales & Use Tax Rate 4.3%

Local State Sales & Use Tax Rate 1.0%

Total 5.3%

General State Sales & Use Tax Rate 4.3%

Local State Sales & Use Tax Rate 1.0%

Regional Sales & Use Tax Rate .7%

Northern VA and Hampton Roads Regions Total Tax 6.0%

Vending Machine Sales and Use Tax

General State Sales & Use Tax Rate 5.3%

Local State Sales & Use Tax Rate 1.0%

Total 6.3%

General State Sales & Use Tax Rate 5.3%

Local State Sales & Use Tax Rate 1.0%

Regional Sales & Use Tax Rate .7%

Northern VA and Hampton Roads Regions Total Tax 7.0%

Retail Qualifying Food Sales

State Qualifying Food Sales Tax Rate 1.5%

Local State Sales & Use Tax Rate 1.0%

Total 2.5%

NO CHANGE

State Qualifying Food Sales Tax Rate 1.5%

Local State Sales & Use Tax Rate 1.0%

Northern VA and Hampton Roads Regions Total Tax 2.5%

slide5
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 .

slide6
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

slide7
Sourcing

What is a locality?

What does sourcing mean?

What is an in-state sale?

What is an out-of-state sale?

slide8
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
slide9
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
slide10
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.
slide11
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.
slide13
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!
slide15
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
slide17
Contracts – General Rule
  • Before April 3, 2013 – Delivered September 30, 2013
  • Entitled to Request Refund
slide18
Bona Fide Real Estate Construction Contracts
  • Contract entered into before April 3, 2013
  • Must have finished plans and specifications
slide19
Tangible Personal Property (installment sales/layaway purchase)
  • Before April 3, 2013 – Redeemed by September 30, 2013
  • Entitled to Request Refund
slide20
Leases
  • Lease/rental agreement entered into before April 3, 2013
  • Leased property must be delivered to lessee by September 30, 2013
slide23
Get Ready! Virginia Sales and Use Tax Changes

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

Telephone: (804) 367-8037

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