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Virginia Vending Machine Dealer’s Sales Tax Return and Worksheet Instructions

What’s New: Effective for Periods on or after June 1 , 2010, the Dealers

Line 2 Deductions:

Discount Allowance has been modiﬁ ed. If you are subject to mandatory

a. Enter on Line 2a, Columns B and C, the cost price and/or

electronic funds transfer (EFT) payment requirements, no dealer’s discount

manufactured cost of tangible personal property sold through

is allowed. For all other ﬁ lers, the discount is reduced.

vending machines and returned by purchasers, if included in Line

General: These forms should be used to compute and report the sales

tax on tangible personal property sold through vending machines for the

b. Enter on Line 2b, Columns B and C, the cost price and/or

locality shown on the Vending Machine Dealer’s Sales Tax Return, Form

manufactured cost of tangible personal property sold through

VM-2. Form VM-2B is used to allocate the 1% local tax and must be ﬁ led

vending machines and returned during the period on which the

with Form VM-2. This worksheet, Form VM-2A, should be kept with your

tax was paid in a prior period.

tax records.

Do not report on these forms non-vending machine sales or use tax on

c. Enter on Line 2c, Columns B and C, any other deduction allowed

non-taxed purchases. Non-vending machine sales (such as wholesale sales,

by the Virginia Sales and Use Tax Act.

over-the-counter sales, etc.) must be reported separately on the Retail Sales

Line 4 Enter on Line 4, Column B, the state tax computed on the amount

and Use Tax Return, Form ST-9 along with use tax for the locality shown on

on Line 3. Enter on Line 4, Column C, the local tax computed on

the return. Use tax accrued in a locality for which you do not hold a sales

the amount on Line 3.

tax registration must be reported on a Consumer’s Use Tax Return, Form

Line 5a Dealer’s discount rate is based on total monthly cost of goods sold

ST-7.

from all locations. You cannot take the dealer’s discount unless you

Filing Procedure: After you have completed the return, voucher and

ﬁ le the return and pay the tax by the due date. No dealer’s discount

schedule, mail them with your payment in the enclosed envelope or deliver

is allowed on local tax. Figure your dealer’s discount as follows:

to your local commissioner of the revenue or treasurer, as soon as possible

• If you ﬁ le only one return (including a consolidated return), ﬁ nd your

after the close of the reporting period but not later than the 20th day of the

cost of goods sold on Line 3, Col. B. Use this number to determine

following month. A return must be ﬁ led for each reporting period even

your discount rate from the table on Line 5a, Col. A.

if no tax is due.

• If you ﬁ le more than one return, add the total monthly cost of

Payments returned by the bank will be subject to a returned payment fee

goods sold from all locations. Use this number to determine your

in addition to any other penalties that may be incurred.

discount rate from the table on Line 5a, Column A.

Change of Ownership: If there has been a change of ownership, do not use

• If you ﬁ le quarterly, add the total quarterly cost of goods sold

the return with the name and account number of the former owner. Send the

from all locations. Divide by three to ﬁ nd average monthly cost

return with notice of change to the Virginia Department of Taxation, P.O.

of goods sold. Use this number to determine your discount rate

Box 1114, Richmond, Virginia 23218-1114. You can register a new dealer

from the table on Line 5a, Column A.

and/or locations, by either completing a Form R-1, Business Registration

• Enter your dealer’s discount rate on Line 5a, Column B.

Application, or electronically using iReg on the Department’s website,

Line 5b Enter on Line 5b, Column B, the dealer’s discount by multiplying

the amount of state tax on Line 4, Column B, by the applicable

Change of Address/Out-of-Business: If you change your business mailing

discount rate determined by Line 5a.

address or discontinue your business, either send a completed Form R-3,

Registration Change Request, or a letter to the Virginia Department of

Line 6

Enter the amount of tax due (Line 4 less Line 5b).

Taxation, P.O. Box 1114, Richmond, Virginia 23218-1114.

Questions: For assistance, call (804) 367-8037 or write to:

Line 7 Enter on Line 7, the amount paid with the Accelerated

Payment Voucher.

Department of Taxation

P.O. Box 1115

Line 8 Subtract line 6 from 7 and enter the amount on line 8

Richmond, VA 23218-1115

Tenemos servicios disponible en Español.

Line 9 Enter on Line 9, Columns B and C, penalty for late ﬁ ling, if applicable.

Penalty is computed on the tax in Line 4 at the rate of 6%

Forms and instructions are available for download from our website,

per month,or fraction thereof that the tax is not paid, not to exceed

, or by calling (804) 440-2541.

30%. However, in no case shall the penalty be less than $7.50 in

Explanation of “Cost Price” and

Column B and $2.50 in

Column C. The minimum penalty applies

“Cost of Manufactured Tangible Personal Property”

whether or not any tax is due for the period.

Line 10 Enter on Line 10, Columns B and C, interest for late ﬁ ling, if

If you acquire items for sale through vending machines and resell without

applicable. Interest is calculated on the amount in Line 4, at the

further manufacturing or processing, you must compute the tax using the cost

rate established in Section 6621 of the Internal Revenue Code of

price. If you manufacture or process the items sold through vending machines,

1954, as amended plus 2%.

you must compute the tax using the manufactured/processed cost.

Manufactured/processed cost includes raw material cost plus labor and

Preparation of Form VM-2

overhead attributable to the manufacture of the items being sold. The method

Transfer the items indicated by the arrows on the worksheet to the

of accounting used for federal income tax purposes is used to determine

corresponding line numbers on Form VM-2.

manufactured cost. For example, if ﬁ rst-in, ﬁ rst-out is used for federal income

Declaration and Signature: Be sure to sign, date and enter your phone

tax purposes, this accounting method is used each month in computing cost

number in the space indicated on the return.

price and manufactured cost of goods. Proper records must be maintained

each month to substantiate cost price and cost of goods manufactured.

Preparation of Form VM-2V

Preparation of Form VM-2A

If paying by check, enter the amount from Line 10 on the Voucher, Form VM-2V,

• Instructions for lines not mentioned below are on the worksheet.

and enclose this voucher and your check with your return.

• Transfer the items indicated by the arrows on the worksheet to the

Preparation of Form VM-2B

corresponding line numbers on Form VM-2.

•

Please note that ﬁ ve counties have the same name as a city - Bedford,

• Retain this worksheet as a part of your tax records. Do not ﬁ le worksheet

Fairfax, Franklin, Richmond and Roanoke.

with Form VM-2

•

Enter in the “Grand Total” line on Page 4, the sum of the entries

Line 1 Enter on Line 1, Columns B and C, the total cost price and/or

in all columns. These totals must agree with the entries on Line 1,

manufactured cost of tangible personal property sold through

Column C, Line 2d, Col. C and Line 3, Col. C, Form VM-2 (on page 3),

vending machines during this period.

respectively.

Form Vm-2aap - Virginia Vending Machine Dealer'S Sales Tax Return Worksheet - Department Of Taxation Page 4

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