Form Tt-8 - Virginia Tobacco Products Tax Return And Instructions (Page 2 of 2) in pdf

Form TT-8 Virginia Tobacco Products Tax Return Instructions

WHAT’S NEW: 2006 Senate Bill 729 makes roll-your-own (RYO)

Persons failing to make records available for inspection by TAX

tobacco subject to the cigarette excise tax instead of the tobacco

during regular business hours are guilty of a Class 2 misdemeanor

products tax. The cigarette tax on roll-your-own tobacco, however,

under Va. Code § 58.1-103.

is imposed at the same rate and in the same manner as the tobacco

Each invoice issued by a wholesale dealer subject to the tax must

products tax and is reported on this return. Other Tobacco Products

prominently reflect that the OTP tax for the products listed on the

(“OTP”) distributors making taxable purchases of roll-your-own

invoice will be paid by the wholesaler by the wording “Virginia

tobacco are required to have a stamping agent permit in addition

Tobacco Products Tax Paid”.

to an OTP distributors license.

Form TT-20, Tobacco Products Tax Monthly Recordkeeping, is

GENERAL: The Virginia Tobacco Products Tax, commonly referred

available to assist you in the preparation of your Virginia OTP tax

to as the Other Tobacco Products Tax or “OTP” tax, is imposed on

return. This form does not need be filed with your return, but should

every distributor. Distributor means: Any person engaged in the

be completed and kept with your records.

business of selling tobacco products in the Commonwealth who

brings, or causes to be brought, into the Commonwealth from

FILING PROCEDURE: Make a check or money order payable

outside the Commonwealth any tobacco products for sale; any

to the Virginia Department of Taxation and mail Form TT-8, with

person who makes, manufactures, fabricates or stores tobacco

your payment, to the Department of Taxation, P.O. Box 26626,

products in the Commonwealth for sale in the Commonwealth;

Richmond, Virginia 23261-6626, on or before the 20

day of the

any person engaged in the business of selling tobacco products

following month. A return must be filed for each reporting period

outside the Commonwealth who ships or transports tobacco

even if no tax is due. Payments returned by the bank will be subject

products to any person in the business of selling tobacco products

to a returned payment fee in addition to any other penalties that

in the Commonwealth; or any retail dealer in possession of untaxed

may be incurred.

tobacco products in the Commonwealth.

QUESTIONS: Call (804) 371-0730 or write the Virginia

For further information, refer to the Tobacco Products Tax

Department of Taxation, P.O. Box 715, Richmond, VA

Guidelines And Rules, which are available from our Web-site

23218-0715. You can obtain most Virginia tax forms from our

website: or by calling the Department’s

Forms Request Unit at (804) 440-2541.

TAX RATES: The tax is imposed at a rate of 10% of the

manufacturer’s sales price. The “manufacturer’s sales price”

Effective for the June, 2010 return due July 20, 2010, the dealer

is the actual price for which a manufacturer, manufacturer’s

discount previously allowed for the Tobacco Products Tax has been

representative or any other person sells tobacco products to an

suspended. For more information, please see Tax Bulletin 10-5 at

unaffiliated distributor.

RECORDKEEPING: Each distributor must keep in each licensed

LINE INSTRUCTIONS FOR COMPLETING RETURN

place of business complete and accurate records for that place of

• The amount for total taxable purchases is based on the

business, including itemized invoices of:

manufacturer’s sales price for each OTP.

1) tobacco products held, purchased, manufactured, brought in

• Lines not mentioned below are self explanatory on the return.

or caused to be brought in from outside the Commonwealth or

shipped or transported to retailers in the Commonwealth;

Line 1 -

Enter the total taxable purchases of cigars.

2) all sales of tobacco products made;

Line 2 -

Enter the total taxable purchases of pipe tobacco.

3) all tobacco products transferred to other retail outlets owned

Line 3 -

Enter the total taxable purchases of roll-your-own

or controlled by that licensed distributor; and

cigarette tobacco.

4) any other records required by TAX. All such books, records

Line 4 -

Enter the total taxable purchases of smokeless

and other papers and documents must be preserved for

tobacco.

a period of at least three years, unless TAX authorizes, in

Line 5 -

Enter the adjustments recorded in current month. The

writing, their destruction or disposal at an earlier date. At any

amount of Line 5 can not exceed the total of Lines 1

time during usual business hours, duly authorized agents

through 4. Any excess may be carried-over to the next

or employees of TAX may enter any place of business of

return. Enter negative numbers in brackets.

a distributor and inspect the premises, the books, records

and other papers and documents required to be kept and

Line 6 -

Enter the total of Lines 1 through 5.

the tobacco products contained therein.

Line 7 -

Enter the tax due computed by multiplying Line 6 by

Each distributor who sells tobacco products to persons other than

10% (.10).

an ultimate consumer must render with each sale itemized invoices

Line 8 -

Enter the penalty due if applicable. If the tax is not paid

showing the distributor’s name and address, the purchaser’s name

when due, a penalty of 5% of the tax due for the first

and address, the date of sale, all prices and the wording “Virginia

month, or fraction there of, and 2% for each additional

Tobacco Products Tax Paid.” In the event that items subject to the

month, or fraction there of, up to a maximum of 20% is

tobacco products tax are sold with items not subject to the tax, the

assessed. Penalty on unpaid tax is from the due date

invoice must show separate subtotals for taxable and nontaxable

to the assessment date of the bill.

items or the seller must issue separate invoices for taxable and

nontaxable items. The seller must preserve legible copies of

Line 9 -

Enter the interest due if applicable. Interest is due

invoices for three years after the date of sale.

if you file the return and/or pay the tax after the due

date. Interest is computed on the tax due at the rate

Each distributor must procure itemized invoices of all tobacco

established in Section 6621 of the Internal Revenue

products purchased. The invoices must show the name and

Code of 1954, as amended, plus 2%.

address of the seller and the date of purchase. The distributor

must preserve a legible copy of each invoice for three years after

Line 10 -

Enter the total of Lines 7b through 9.

the date of purchase.

Form Tt-8 - Virginia Tobacco Products Tax Return And Instructions Page 2

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