The following highlights tax changes that will affect some taxpayers:
Sales Tax
Sales Tax Holiday
The sunset date for the combined sales tax holiday for school supplies and clothing, Energy Star and WaterSense products, and hurricane preparedness products has been extended from July 1, 2017 to July 1, 2022. The 2017 tax-free weekend will be Aug. 4-6. For more information, see Virginia Sales Tax Holiday.
Electronic filing requirements
- Out-of-state dealers must file Form ST-8 (Use Tax Return) and all required schedules electronically, starting with the Aug. 20 return for monthly filers and the Oct. 20 return for quarterly filers.
- Businesses must file Form ST-7 (Business Consumer’s Use Tax Return) and all required schedules electronically starting with the Aug. 20 return for monthly filers and Oct. 20 return for quarterly filers.
Dealer registration based on inventory
Out-of-state dealers are required to register with us for the collection of sales tax if they own inventory for sale located in Virginia and sell to Virginia customers. For more information, see Tax Bulletin 17-3.
Automotive repair supplies
Automobile repair businesses are now required to collect sales tax from customers on charges for supplies used during the repair of vehicles. Previously, auto repair shops paid sales tax when they purchased the supplies. For more information, see Tax Bulletin 17-7.
Administrative fees
An administrative fee is now required for the following:
- Request for a doubtful collectibility offer in compromise (Form OIC-Fee)
- Ruling letter and local business tax advisory opinion requests (Form Rulings-Fee)
- Corporate income tax filing status change request (Form Filing Status – Fee)
See the forms for fee amounts and instructions.
New offer in compromise forms
A new series of offer in compromise forms is now available.
- Individuals seeking relief for doubtful collectibility will use Form OIC I-3 and businesses will use Form OIC B-3. A fee may be required for these submissions.
- For requests for relief based on doubtful liability and requests for waiver of penalty for reasonable cause, individuals will use Form OIC I-2 and businesses will use Form OIC B-2.
See Offers in Compromise for more information.
For an overview of all tax laws passed during the 2017 General Assembly, see our 2017 Legislative Summary.