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Corporations and Pass-Through Entities

Sales and Use Taxes

Employer Withholding Tax

Tobacco Taxes

Other Business and Miscellaneous Taxes

 

Forest Products Tax:  Change to Imposition of Tax, Effective 7/1/15

Under legislation enacted by the 2015 Session of the General Assembly, the imposition of the forest products tax will shift to the first manufacturer processing the forest products, effective July 1, 2015.  The intent of the change is to reflect current industry practices by moving responsibility for the tax from processors operating in the woods to commercial taxpayers with fixed places of business.  For guidelines on the transition and filing requirements, see Tax Bulletin 15-5 and the Frequently Asked Questions.  

Requesting Copies of Tax Returns - New Procedure 7/1/15

Effective July 1, 2015, the Department of Taxation will charge $5.00 for each copy of a previously filed tax return.  See our Copies of Returns page for details on the new procedure, including the form for making your request.

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Pass-Through Entity Electronic Filing Requirement

Beginning January 1, 2015, all pass-through entities are required to file their annual returns and make all payments electronically. This is effective beginning with taxable year 2014 returns, return payments and withholding payments. The Department offers several options for electronically filing PTE returns and payments:

  • The PTE e-File program works with the IRS e-File program and allows both the federal and state returns to be filed together through one secure system.
  • A free online 502EZ eForm will be available, beginning January 2015, for filing the annual return and making a tax due payment if you meet certain eligibility requirements.
  • A free online 502W eForm will be available, beginning January 2015, for making withholding payments.
  • A bank ACH credit may be used to make tax due payments or withholding payments.

PTEs that are unable to file and pay electronically may request a waiver.

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Announcing Form 500EZ

Form 500EZ, a new, shorter version of the Form 500 (Virginia Corporation Income Tax Return) is now available online. The form is designed to help businesses more easily meet the electronic filing requirement for corporation income tax returns, and is free and available 24/7. Qualifying businesses do not have to register, provide login credentials, or mail additional documentation when using Form 500EZ. Visit Form 500EZ for details and eligibility criteria.

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Form VA-6 Filing Date Changed to January 31

Under the provisions of the 2014 Appropriations Act, the due date for filing the Employer's Annual Summary of Virginia Income Tax Withheld and required W-2 and 1099 statements has been changed from February 28 to January 31. The earlier filing date will help to ensure faster and more accurate processing of individual income tax refunds. The change takes effect for Forms VA-6 and VA-6H for calendar year 2014. Because January 31, 2015 is a Saturday, the actual due date for the 2014 Form VA-6 and accompanying income statements will be Monday, February 2, 2015. For details on filing, visit our Withholding Tax page.

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Corporation Income Tax Changes for 2015

Subtraction for Certain Long-Term Capital Gains: The sunset date for making investments in certain high technology businesses that qualify for this subtraction is extended from June 30, 2015 to June 30, 2020. 


Subtraction for the Gain on the Sale of Land for Open-Space Use: This subtraction is not available for taxable years beginning on or after January 1, 2015.

 
Disaster Relief Assistance by Out-of-State Businesses and Individuals: Legislation passed by the 2015 General Assembly provides a tax exemption for certain out-of-state businesses and employees providing disaster relief assistance in Virginia. The exemption provisions apply to certain state and local taxes and fees as well as to certain registration and licensing requirements. The provisions do not apply to any transaction taxes and fees, including but not limited to, motor fuels taxes, sales and use taxes, transient occupancy taxes, and car rental taxes and fees based on purchases, leases, or consumption in Virginia. 


Homeowner Associations:  Homeowner associations are now required to file and pay electronically. The annual corporation income tax return must be filed through the federal/state e-File program or the department’s free eForms system. Certain Virginia corporations, including most homeowner associations, may qualify to file a Form 500EZ using eForms on the department’s website. See instructions under “How to File” for more information. 


Manufacturer’s Modified Apportionment Method: Qualifying manufacturers may elect to use a single sales factor for taxable years beginning on and after July 1, 2014, which will be computed on the Single Factor Computations line on Schedule 500A. See the instructions for Schedule 500A for details on how to apportion income. 


Apportionment for Retail Companies: For taxable years beginning on or after July 1, 2014, but before July 1, 2015, retail companies must use a quadruple-weighted sales factor. Retail companies will be required to use single sales factor apportionment for taxable years beginning on and after July 1, 2015. See the Schedule 500A instructions for further information and qualifications. 


Tax Credits: Modifications were made to some tax credits for 2015. See What’s New for Tax Credits.   


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Advancement of Virginia's Fixed-Date Conformity to the Internal Revenue Code

Under emergency legislation (House Bill 1044; Chapter 1 of the 2015 Acts of Assembly) passed by the 2015 General Assembly and signed by Governor McAuliffe on February 16, 2015, Virginia's conformity to the terms of the Internal Revenue Code will advance from January 2, 2013 to December 31, 2014.   Tax Bulletin 15-1 provides taxpayers with directions on how to reconcile this legislation and Virginia's January 2, 2013 date of conformity to the Internal Revenue Code with their 2014 Virginia income tax returns.

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Cigarette Revenue Stamping Agents Update

The Virginia Department of Taxation recently switched cigarette revenue stamp vendors. House Bill 5002 (2014 Special Session I, Acts of Assembly Chapter 2) requires the Department to provide a report to the General Assembly regarding incidents arising during Virginia tax stamping operations. If you are a permitted stamping agent, please report stamping operation exceptions resulting in costs equal to or greater than $500.00 that occur on or after April 1, 2014 to our Hotline at (804) 367-8209. Costs include damaged stamps, loss of productivity due to heat application setting modifications, and financial technical assistance required to modify heat application operations.

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Last Updated 12/18/2015 16:01