Form Ct-2 - Guidelines And Rules For The Virginia Communications Taxes (Page 10 of 16) in pdf

Bad Debts

Sale of Business

Every provider will be allowed a credit against the

Any provider who sells or quits its business, shall make

tax shown to be due on the return for the amount of

a final return and payment within 15 days after the

tax previously paid on accounts that are owed to the

date of selling or quitting the business. The Provider’s

provider and that have been found to be worthless

successors or assigns, if any, shall withhold a sufficient

within the period covered by the return. The credit,

amount of the purchase money to cover taxes, penalties,

however, cannot exceed the amount of the uncollected

and interest due and unpaid until the former owner

payment determined by treating prior payments on each

produces a receipt from TAX showing that all taxes,

debt as consisting of the same proportion of payment,

penalties, and interest have been paid or a certificate

communications sales tax, and other nontaxable charges

stating that no taxes, penalties, or interest are due. If

as in the total debt originally owed to the provider. The

the purchaser fails to withhold the purchase money as

amount of accounts for which a credit has been taken

required, the purchaser will be personally liable for the

that are thereafter in whole or in part paid to the provider

payment of the taxes, penalties and interest due and

must be included in the first return filed after collection.

unpaid that were incurred by the business operation of

(Source: Code of Va. § 58.1-655)

the former owner. In no event, however, may the tax,

penalties and interest due by the purchaser be more

Dealer Discount

than the purchase price paid for the business or stock

Every provider holding a certificate of registration will

of goods. (Source: Code of Va. § 58.1-660)

be allowed a dealer discount for accounting for and

remitting the communications sales tax if the amount

Customer Remedy Procedures for Billing Errors

due was not delinquent at the time of payment. The

If a customer believes that an amount of tax or an

discount will be allowed in the form of a deduction on

assignment of place of primary use or taxing jurisdiction

each return. The discount will be allowed on the first

included on a billing is erroneous, the customer must

three percent of the communications sales tax in the

notify the provider in writing. See “Sourcing Rules” to

following percentages:

determine when communications services are subject

to the Virginia communications sales tax. The customer

Monthly Taxable Sales

Percentage

must include in this notification the following:

$0 to $62,500

•

The street address for the customer's place of

$62,501 to $208,000

primary use;

$208,000 and above

•

The account name and number for which the

The discount will be computed according to this

customer seeks a correction;

schedule, regardless of the number of certificates of

•

A description of the error asserted by the customer;

registration held by the provider. (Source: Code of Va.

and

§ 58.1-656)

•

Any other information that the provider requires to

The dealer discount on the communications sales tax

process the request.

will become effective on the first day of the month

Within 15 days of receiving notice in its billing dispute

following 60 days after the Auditor of Public Accounts

office, the provider must review its records, within an

(“APA”) certifies that the revenues collected in the most

additional 15 days, to determine the customer's taxing

recent fiscal year from the communications taxes are at

jurisdiction. If this review shows that the amount of

least equal to the revenues from the taxes and fees that

tax or assignment of place of primary use or taxing

are amended or repealed by the new law for the fiscal

jurisdiction is in error, the provider must correct the

year ending June 30, 2006 at the tax rates that were

error and refund or credit the amount of tax erroneously

adopted on or before January 1, 2006 plus the annual

collected from the customer for a period of up to

cost to TAX of administering the communications sales

two years. If this review shows that the amount of

tax. The APA certification will be completed within 60

tax or assignment of place of primary use or taxing

days after the end of the fiscal year. (Source: Acts of

jurisdiction is correct, the provider must provide a

Assembly 2006, Chapter 780, Enactment Clause 7).

written explanation to the customer.

TAX will notify providers at such time as the dealer

discount becomes effective.

These procedures are the first course of remedy available

to customers seeking correction of assignment of place

of primary use or taxing jurisdiction or a refund of or

other compensation for taxes erroneously collected by

the provider. No cause of action based upon a dispute

arising from such taxes will accrue until the customer

has exercised these rights and procedures. (Source:

Code of Va. § 58.1-652)

CT-2 W

REV 11/06

Page 10

Form Ct-2 - Guidelines And Rules For The Virginia Communications Taxes Page 10

Related Articles

Related forms

Related Categories