Who must pay
Dealers whose taxable sales totaled $4 million or more for the 12-month period ending June 30, 2017 are required to make an accelerated retail sales and use tax payment in June 2018. 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 mail notifications to each dealer that meets the $4 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 2017, 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, 2018
*Since June 30 is a Saturday, payments made on July 2, 2018 will be considered on time.
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, 2018.
- 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 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 the due date, and tell your bank to identify the payment for the period ending June 30, 2018. 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 25, 2018 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 due date to avoid the 6% penalty for late payment.
- After making the accelerated payment, file your regular June return by July 20, 2018, and pay any difference between the actual June 2018 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 July 2, 2018. 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 2018 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, 2018 to:
Virginia Department of Taxation
PO Box 5771
Richmond, VA 23220-0771