Tax Type
Consumer Use Tax
Description
CONSUMER'S USE TAX RETURNS FOR INDIVIDUALS
Topic
Property Subject to Tax
Returns/Payments/Records
Date Issued
12-16-1992
CONSUMER'S USE TAX RETURNS FOR INDIVIDUALS
Virginia's consumer's use tax, the "other half" of the Virginia sales tax enacted in 1966, is generally owed on any purchases of tangible personal property upon which no sales tax was paid - for example, items purchased through the mail or by telephone from an out-of-state company. While a number of out-of-state businesses voluntarily collect the tax as a service to their customers, many do not, thereby requiring individuals to remit the tax directly to the department.
To make it easier for individuals to pay the tax, beginning taxable year 1992, the department will allow the filing of consumer's use tax returns by individuals on an annual basis. Businesses, including partnerships and sole proprietorships, however, will continue to file monthly or on an incurred basis, whichever is applicable. Individual taxpayers will be required to file returns only if their purchases upon which no Virginia sales tax was paid total more than $25 for the year.
A separate return, Form CU-7, has been developed and will be included in individual income tax packages. Individuals can file under their social security numbers and may file joint returns with their spouses. Additionally, penalties and interest will be waived for 1992.
Individual consumer's use tax returns will be due at the same time as the income tax returns - May 1 for calendar year filers and by the 15th day of the 4th month after the close of the taxable year for fiscal year filers. They should be filed separate from income tax returns and remitted directly to the Department, not to the local Commissioner of the Revenue. Director of Finance or Supervisor of Assessments.
Individuals may want to encourage out-of-state businesses with which they deal most frequently to begin collecting the use tax to relieve them from having to file consumer's use tax returns.
Questions regarding the new individual consumer's use tax returns may be directed to the Department of Taxation, P. O. Box 1880, Richmond, Virginia 23282-1880, (804) 367-8037.
Rulings of the Tax Commissioner