VA Tax News

  • 18 Jun 2013 9:54 AM | Anonymous

    If you were not able to attend our Get Ready! Webinar on June 7, 2013, or you would like to see the presentation again, the webinar recording is now available on our website.


    The webinar presented a detailed overview of the Sales and Use Tax changes from House Bill 2313, including:

    • Statewide and regional rate increases
    • Changes to returns and schedules (Forms ST-9 and ST-8)
    • Sourcing rules for intrastate and interstate transactions
    • Transitional provisions
    • Discussions of some of the questions submitted by attendees

    A summary of over 100 questions received during the webinar, with responses, will be posted to our website shortly.


    A note about the webinar content:  This broadcast, which was recorded on June 7, 2013, contains references to the Counties of Gloucester and Surry being in the list of localities included in the Hampton Roads Region. As explained in Tax Bulletin 13-8, published on June 13, 2013, Gloucester County and Surry County are not part of the Hampton Roads Region, and are not subject to the additional sales and use tax rate increase of 0.7 percent.
  • 03 Jun 2013 2:13 PM | Anonymous

    For calendar year filers who were out of the country on May 1, 2013, Taxable Year 2012 Virginia income tax returns are due by July 1, 2013. The extended due date for individuals who were out of the country on May 1, 2013, is January 1, 2014


    Virginia law allows an automatic six-month extension for filing Individual Income Tax returns, but requires that at least 90 percent of the final tax liability be paid by the original due date. Taxpayers who do not meet the payment requirement may be subject to the extension penalty. Visit the Department's website for more details on penalty and interest charges.


    Special note for military service members:  If you were out of the country pursuant to military orders, especially if you served in a combat zone, special extension provisions may apply.  Visit the Military Tax Tips page on the Department's  website for details.

  • 24 May 2013 2:25 PM | Anonymous
    The Qualified Equity and Subordinated Debt Investments Tax Credit is capped at $5 million annually by statute.  However, beginning with Taxable Year 2006, budget actions have imposed a lower tax credit cap for certain taxable years.  Under the budget bill for the 2012-2014 biennium (2013 House Bill 1500), the tax credit limit will be $4.5 million for Taxable Year 2013 and $5 million for Taxable Year 2014.  For taxable years after 2014, the tax credit limit will remain at the statutory cap of $5 million, unless the General Assembly takes future action to change it.  See Tax Bulletin 13-7 (P.D. 13-75) for complete information.
  • 24 May 2013 2:25 PM | Anonymous

    On January 25, 2013, the Department of Taxation ("the Department") published Tax Bulletin 13-1 (Public Document 13-8, 1/25/13), which announced that the indexed tax credit cap for the Land Preservation Tax Credit for Calendar Year 2013 was $113,909,000.  However, because House Bill 1398, enacted by the 2013 General Assembly,  removed the Land Preservation Tax Credit cap's adjustment for inflation, the tax credit cap for Calendar Year 2013 and thereafter has been reduced to $100 million.  See Tax Bulletin 13-6 (P.D. 13-74) for complete information.

  • 20 May 2013 8:57 AM | Anonymous

    In an effort to gain an insight on the various aspects of our e-File process, the Virginia Department of Taxation will begin conducting an informal survey of tax preparers each year. Survey responses will be used to identify possible improvements to our e-File system for the upcoming tax season. While not all concerns may be addressed, the Department will make every effort to implement changes based on the input received.

    The survey questions for 2013 can be found here

    Please e-mail your responses to by May 24, 2013.
  • 17 May 2013 5:55 PM | Anonymous

    Protecting your personal information and preventing identity theft is very important to the Department. 

    Over the next few weeks, the Department will be enforcing the current Commonwealth standard forpassword complexity in its Business iFile system. This affects all Business iFile users whose password does not currently meet these password complexity requirements, including users with Virginia Employment Commission accounts.


    The password complexity standard is as follows:


    1. Passwords must be between 8-12 characters in length with no spaces.
    2. Passwords are case sensitive and cannot be the same as your User ID.
    3. Passwords must contain at least 3 of the following characteristics: lower case letters, upper case letters, numbers or special characters $, #, %, (, &, ), +, !. Please note that periods and asterisks are not allowed as special characters.

    Once this change is effective, Business iFile users with passwords that do not meet these requirements will be prompted to change their password upon their next Business iFile login. If your clients' password does not meet these requirements, you may wish to update it in advance of the upcoming changes.


    For more information regarding how Business iFile could help you, go to the Business iFile FAQ.
  • 17 May 2013 10:53 AM | Anonymous

    Free Webinar:

    Get Ready for the Virginia Sales and Use Tax Changes! 

    Host:  Virginia Department of Taxation

    Date:  Friday, June 7, 2013

    Time: 1:00pm Eastern; 10:00am Pacific (60 minute session)


    Register now


    Sales tax rates will change on July 1, 2013 - are you ready? Join us for a free, one-hour webinar to explore the sales and use tax rate changes that take effect on July 1, 2013.  During this interactive session, Virginia Department of Taxation staff members will guide you through the provisions of House Bill 2313, including:

    • Statewide and regional rate increases
    • Complete overview of associated changes to returns and schedules (Forms ST-9 and ST-8, available now)
    • Sourcing rules for intrastate and interstate transactions
    • Transitional provisions

    Participants will be able to submit questions for discussion throughout the broadcast.


    Who should attend?  Retail dealers inside and outside Virginia and/or their tax accounting staff, tax professionals, and software vendors.


    Space is limited - sign up today!
  • 15 May 2013 8:59 AM | Anonymous

    The Department has released Guidelines for the upcoming Hurricane Preparedness Sales Tax Holiday.  

    The holiday is a recurring, seven-day event beginning each year on May 25 and ending on May 31.  During the holiday, portable generators with a selling price of $1,000 or less per item, and other hurricane preparedness items, including, for example, batteries, bottled water, flashlights, and weather band radios with a sales price of $60 or less per item may be purchased exempt of the Retail Sales and Use Tax.

    The full text of the Guidelines is available in the Laws, Rules, and Decisions section of the Department's website as PD 13-71 or available on the Virginia Regulatory Town Hall here.  Additional information may be found  at:

  • 12 Apr 2013 4:12 PM | Anonymous

    A reminder: For the 2012 filing season, the Department's Customer Service telephone service hours for customers calling with general and account-specific questions are between 8:30 a.m. and 5:00 p.m. Monday through Friday. Our Live Chat service will be available even longer - from 8:00 a.m. to 8:00 p.m. Monday through Friday and from 8:30 a.m. to 12:00 noon on Saturdays.


    Our contact information can be found here.

  • 12 Apr 2013 4:11 PM | Anonymous

    The due date for filing your 2012 Virginia Individual Income Tax return is Wednesday, May 1, 2013.  If you're thinking of taking advantage of Virginia's automatic six-month extension to file your Virginia taxes this year, here are a few reminders about the rules for automatic extensions.


    • The extension only covers time to submit your tax return.  It does not allow you additional time to pay any balance of tax due. Payment for any tentative tax due must be submitted by May 1.
    • The due date for returns filed under extension is November 1, 2013. You do not need to submit an application for the extension - it is applied automatically as long as you file your return by the end of the extension period.
    • Interest will always apply to any tax amounts that are not paid by the original due date for filing. Interest will accrue from the original due date for filing through the date that all tax, penalty, and interest is paid in full.
    • The extension penalty applies to unpaid tax if 90 percent of your total tax liability is not paid by the original filing due date and you file during the automatic extension period.  You will avoid the accrual of extension penalty by ensuring that 90 percent of your total tax due is paid by the original due date and by filing on or before the extended due date.
    • Failure to file during the automatic extension period will void the extension and reset your due date back to the original due date.  The maximum late filing penalty of 30 percent will be assessed on the balance of tax due with your return.
    • Even if you file on time during the extension period, failure to pay the tax due with your filing will cause the late payment penalty to be assessed.  In that circumstance, the late payment penalty will accrue at 6 percent per month on unpaid tax amounts, beginning with the date the return is filed.  This is in addition to any extension penalty that may have already been assessed.
    • No penalty or interest are assessed on tax returns due a refund, regardless of whether they are filed during the extension period or after the extended due date.

    The key to avoiding additional charges is to ensure that payment covering your entire tax due is submitted on or before the original due date for filing. 


    Extension payments to cover tentative tax due can be submitted by check or money order with Form 760 IP, or through the Online Services for Individuals area of the Department's Web site.


    For additional information on the assessment of penalty and interest, please see the Department's website topic "Penalties and Interest."  For general information on extension guidelines, computing tentative tax due, and making extension payments, see the Instructions for the 760 IP voucher.

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