Legislation passed by the 2015 Virginia General Assembly requires dealers, whose sales totaled $2.5 million or more for the 12-month period ending June 30, 2014, to make accelerated sales and use tax payments that will be due in June 2015. This requirement is based on aggregate sales for all locations, regardless of the number of returns filed by the dealer.

The Department of Taxation will notify affected dealers by mailing letters to them in early May. The amount of the accelerated tax payment will be 90% of the taxes owed for the month of June 2014. In late May the department will mail notifications to dealers with the specific payments due and instructions for making payments.

Dealers that are subject to electronic filing and/or payment requirements must make accelerated sales tax payments electronically. They can pay by using VATAX Online, a free, secure filing and payment service offered by the Tax Department, or by using ACH Credit provided by banks.

Electronic payments are due June 30, 2015. Payments made by check must be postmarked on or before June 25, 2015.

Dealers who do not make accelerated sales tax payments on time will be subject to paying a 6% penalty based on any late or unpaid tax due.

After making the accelerated payment, dealers should file their June 2015 returns and pay the difference between the actual tax liability for the month and the accelerated sales tax payment by July 20, 2015.

If dealers pay more than is owed for the month of June 2105, they will be able to claim a credit on their July 2015 sales and use tax returns.

For more information, including guidelines and frequently asked questions, visit the department's Accelerated Sales and Use Tax web page.