Tuesday, June 5, 2012
Nexus news for those shipping tangible personal property to VA eff 1/1/2014 (2)
If a dealer has a location in VA but it can prove that this location does not materially participate in the process of delivering or selling merchandise to VA customers it may exempt itself from the requirement to collect/remit sales taxes. However, the merchant must advise VA purchasers that use tax may be due from them to VA for their purchase from an out of state seller. Dealers will be subject to a penalty of $5 per failure to provide this notice and must further send a second notice by 1/31 which reports the total amount paid by the purchaser in the previous year (plus a variety of other details) for any sales using a billing address in VA. A similar statement must be sent to the VA Division of Taxation by 3/1 of each year. Dealers will be subject to a penalty of $10 per failure to provide each of these last two notices.