December 1, 2020
Re: § 58.1-1821 Application: Retail Sales and Use Tax
This is in response to your letter submitted on behalf of ***** (the “Taxpayer”) in which you seek correction of the retail sales and use tax assessments issued for the periods October 2018 through February 2019. I apologize for the delay in responding to your appeal.
The Taxpayer operates as a rental business of decorations, props and displays to both in-state and out-of-state customers for weddings, parties and other events. The Taxpayer was assessed sales tax for the periods at issue because the Taxpayer did not timely file its sales tax returns and remit the payments due. The Taxpayer is contesting the assessments, and maintains that the owner’s extenuating circumstances prevented the Taxpayer from timely filing the returns and remitting the sales tax for the periods. The Taxpayer maintains that some of the sales made during the period were to clients not located in Virginia, and as a result, the sales tax due for these periods is less than the assessments issued by the Department. The Taxpayer provides documentation in support of its contention that the assessments issued by the Department are erroneous.
It is my understanding that the Taxpayer has filed the returns and remitted the payments for the periods at issue. The Department’s records demonstrate that the assessments at issue were cancelled and reversed upon receipt of the sales and use tax returns and payments filed by the Taxpayer. Accordingly, the appeal filed by the Taxpayer is not necessary and no further action is required regarding this matter.
The Taxpayer is reminded that as a registered dealer in Virginia, it is required to timely file sales tax returns and remit payment of the tax to the Tax Commissioner. Specifically, Virginia Code § 58.1-615 A provides, in pertinent part, that “every dealer required to collect or pay the sales or use tax” must file a return “on or before the twentieth day of the month following the month in which the sales tax shall become effective.” Virginia Code § 58.1-616 provides, in pertinent part, that “At the time of transmitting the return required under § 58.1-615, the dealer shall remit to the Tax Commissioner the amount of tax due….”
The Code of Virginia sections cited are available on-line at www.tax.virginia.gov in the Laws, Rules and Decisions section of the Department’s web site. If you have any questions about this response, you may contact ***** in the Department’s Office of Tax Policy, Appeals and Rulings, at *****.
Craig M. Burns