Who must pay
Dealers whose taxable sales totaled $10 million or more for the 12-month period ending June 30, 2020 are required to make an accelerated retail sales and use tax payment in June 2021. The requirement is based on aggregate sales and purchases for all business locations, regardless of whether you file separate, combined, or consolidated returns.
In April, we will mail notifications to each dealer that meets the $10 million threshold. By June 1, we will send another notification to dealers at all of their business locations with the specific amount of the tax owed and instructions for making the payment.
Call our Business Customer Services line at 804.367.8037 if your business meets the accelerated sales tax payment criteria and did not receive a letter.
How much will your business owe
If your business meets the threshold, you are required to pay 90% of the sales tax you owed for the month of June 2020, minus the applicable dealer’s discount and prepaid wireless fee for that month. We will send you a letter by June 1 with the specific amount due.
How to file and pay
You are required to file and pay electronically unless you have already been granted an electronic filing waiver.
- Electronic payments are due June 30
- Checks must be postmarked on or before June 25
After you receive your 2nd letter with the amount due, you can schedule your accelerated sales tax payment up to the deadline using any of the payment options available for your regular sales tax payments:
- Business Online Services Account - When you log into your account, you’ll see instructions for making your accelerated sales tax payment. You can schedule the payment in advance for June 30, 2021.
- eForms - Use eForm ST-APC (available by June 1). No login or password is required.
- ACH Credit - Contact your financial institution to make arrangements to credit the Commonwealth’s bank account. For more information and tips for 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 25 to:
Virginia Department of Taxation
PO Box 26627
Richmond, VA 23260-6627
Tips for making your payment
- Do not combine the accelerated June payment with your May payment - make your May payment by June 20 as usual, and make your accelerated June payment separately by the deadline (June 30 for electronic payments, and June 25 for paper).
- Pay in full on or before the deadline to avoid the 6% penalty for late payment.
- After making the accelerated payment, file your regular June return by July 20, and pay any difference between the actual June liability and the accelerated payment. If there is any remaining overpayment after the July payment, we will refund the amount.
Penalty for late payment
We will disable all accelerated sales tax payment options after July 1. 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 on the penalty owed.
If you pay less than the amount due, the 6% penalty will apply to the underpayment.
If you’re not able to make the required accelerated sales tax payment, you may request an undue hardship waiver.
How to submit your waiver request
Complete and submit the Accelerated Sales Tax Hardship Waiver Request Form with any supporting documentation by June 7. via:
- Fax: 804.225.3376
- Online: Log in to your business online services account, and submit your waiver request through secure messaging.
- Mail: Virginia Department of Taxation, AST Waiver Requests, PO Box 5771 Richmond, VA 23220-0771
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.
For more information, see Guidelines for the Accelerated Sales Tax Payment on the Virginia Regulatory Town Hall.