Instructions For Business Consumer'S Use Tax Return And Work Sheet
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Instructions For Business Consumer’s Use Tax Return and Work Sheet
What’s New: The state sales and use tax rate on sales of non-food items
Preparation Of Consumer’s Use Tax Return Work Sheet
increases from 3.5% to 4% effective September 1, 2004. This change will
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Instructions for lines not mentioned below are on the work sheet.
result in a combined state and local tax rate of 5% (4% state tax and 1%
local tax). For sales of food for home consumption, the current state tax
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Use the work sheet to compute your consumer use tax liability.
rate of 3% remains in effect through June 30, 2005. For additional
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After completing the work sheet, copy the information onto the ST-7
information about new sales and use tax laws, visit our web site at
Consumer’s Use Tax Return.
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Retain this work sheet for your records.
The initial purchase of telephone calling cards is subject to the Virginia
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List all tangible personal property subject to the tax during the period
sales and use tax effective July 1, 2004. The charge for the renewal,
covered by the return above.
recharge or replenishment to obtain additional minutes, subsequent to the
initial purchase, is not subject to tax. The charge for the replenishment is
Line 1 - Enter on Line 1, column (b) the total cost price of the purchases
exempt regardless of whether the transaction is done in person, over the
qualifying as eligible food sold for home consumption that is subject to the
telephone, or over the Internet. Dealers who sell telephone calling cards
reduced state use tax rate. Enter the tax on Line 1, Column (c).
through vending machines are required to remit tax based upon the cost
Line 2 - Enter on Line 2, Column (b), the cost price of purchases, other
price of the calling cards. Telephone calling cards, subject to the sales tax,
than eligible food, that is subject to the state general use tax. Enter the tax
are not subject to any other state and local utility taxes.
in Column (c).
General: The use tax applies to the use, consumption or storage of tangible
Line 3 - Enter on Line 3, Column (b) the total cost price of all purchases
personal property in Virginia when the Virginia sales or use tax was not
subject to local use tax [Line 1, Column (b) plus Line 2, Column (b)]. Enter
paid at the time of purchase. The use tax is computed on the cost price of
the tax in Column (c).
the property, which is the total amount for which the property was purchased,
Line 5 - Enter on Line 5, penalty if you file the return and/or pay the tax
including any services that are a part of the purchase, valued in money or
after the due date. The penalty for failure to file and/or pay on time is 6%
otherwise, and includes any amount for which credit is given the purchaser
of the tax due (Line 4) for each month, or part of a month, that the tax is
or lessee by the seller.
not paid, not to exceed 30%. The minimum penalty is $10.00.
One-half of the charge for maintenance contracts that provide for both
Line 6 - Enter on Line 6, interest if you file the return and/or pay the tax
parts and labor is exempt. On Lines 2 and 3, along with other taxable
after the due date. Interest is computed on the tax due on Line 4 at the
purchases, enter 50% of the cost price of such contracts purchased during
rate established in Section 6621 of the Internal Revenue Code of 1954, as
this period.
amended plus 2%.
This form is for use by businesses, including partnerships and sole
proprietorships. Individuals not operating a business should file an annual
Preparation Of Schedule Of Local Use Taxes (Form ST-6B)
consumer’s use tax return, Form CU-7.
You should file this schedule only if the Local Use Tax reported on Form
Filing: A Business Consumer’s Use Tax Return, Form ST-7, must be filed
ST-7 is due to more than one locality. When this occurs, enter “See
on or before the 20th day of the month following the period in which the
Attached” in Block labeled “City or County of Use or Consumption” on
use tax liability was incurred. Returns are not required to be filed for periods
Form ST-7 and complete Form ST-6B as follows:
in which no use tax is due.
Enter name, address, account number and the filing period in the block
Mail with Form ST-7 and Form ST-6B, if applicable, with your payment
in the upper right hand corner. In the column headed “Tax” and on the
to the Department of Taxation, P.O. Box 26626, Richmond, Virginia
same line with the appropriate city or county, enter local tax applicable to
23261-6626, or deliver to your local commissioner of the revenue or
that locality. Any tax that you are unable to assign accurately should be
treasurer, as soon as possible after the close of the reporting period but
entered on the “Unassigned” Line. The total local use tax reported on this
not later than the 20th day of the following month. Payments returned by
form must agree with the entry on Line 4, Column (c) on Form ST-7.
the bank will be subject to a returned payment fee in addition to any other
penalties that may be incurred.
Questions: If you have questions, please call (804) 367-8037 or write the
Virginia Department of Taxation, P.O. Box 1115, Richmond, Virginia
23218-1115. Most Virginia tax forms can be obtained from the Department’s
web site, , or by calling the Department’s Forms
Request Unit at (804) 440-2541. Tenemos servicios disponible en Español.
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