- Virginia offers a one-time safe harbor for contractors who have omitted or inaccurately remitted retail sales and use taxes
- The Department of Taxation can use erroneously collected retail sales tax payments to offset a use tax assessment
- To qualify, contractors must show that the property for which sales tax was incorrectly collected is subject to a use tax assessment
- After receiving relief, contractors must pay sales tax to vendors or remit use tax directly to the Department for purchases of tangible personal property
- The policy is a one-time opportunity to help contractors rectify tax remittance errors and ensure compliance with regulations
Source: thompsontax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
