Virginia Sales Tax Due Dates for Businesses

Businesses registered to collect sales tax in Virginia are responsible for regularly filing returns and remitting the tax collected from customers. The frequency of these filings and their due dates are determined by specific criteria established by the state, which is necessary for proper tax compliance.

Determining Your Filing Frequency

The Virginia Department of Taxation assigns a filing frequency to each business based on its average monthly sales tax liability. This determination dictates how often a business must report and pay the sales tax it has collected.

A quarterly filing status is assigned to companies whose average monthly sales tax liability is between $0 and $100.00. Businesses that collect a higher amount of tax, with an average monthly liability of $100.01 or more, are placed on a monthly filing schedule. A seasonal filing option is also available for businesses that operate for only a portion of the year. Upon registration, the Department of Taxation notifies a business of its assigned frequency and will issue a notification if a change in liability requires a change in filing status.

Key Sales Tax Deadlines

The standard deadline for all sales tax returns, whether for monthly or quarterly filers, is the 20th day of the month immediately following the close of the reporting period. For a monthly filer, the return for sales made in January is due by February 20th. Similarly, for a quarterly filer, the return covering the first quarter (January, February, March) must be filed by April 20th.

If a due date falls on a weekend or a state holiday, the deadline is automatically extended to the next business day. For example, if the 20th of the month is a Saturday, the return and payment would not be considered late if submitted on the following Monday, assuming it is not a holiday.

Accelerated Filer Rules

Previously, Virginia required certain high-volume dealers to make an accelerated sales tax payment for the month of June. This rule applied to businesses with taxable sales and purchases exceeding a specific large threshold. However, this requirement was repealed by the Virginia General Assembly for all payments that would have been due in June 2022 and thereafter. Consequently, businesses are no longer required to make these special accelerated payments and can follow the standard remittance schedule.

Filing and Payment Procedures

The primary method for filing is electronic, utilizing the Virginia Tax online business services portal. For filing periods beginning in April 2025, Form ST-1 is the required return for all sales tax filers. While electronic filing is the standard, businesses may request a waiver if they are unable to file and pay electronically.

Payment of the collected sales tax is also handled electronically for the vast majority of businesses. Electronic Funds Transfer (EFT) is the required payment method, which can be executed through the online portal or through ACH credit payments arranged with a financial institution.

As an incentive for timely compliance, the state offers a dealer’s discount. This allows a business to retain a small portion of the tax it collects, provided the return is filed and the tax is paid by the due date. The discount is calculated on a tiered system based on monthly taxable sales: 4% for sales up to $62,500, 3% for sales from $62,501 to $208,000, and 2% for sales of $208,001 and above. This discount structure is scheduled to change; effective July 1, 2025, it will be a uniform 6% of the first 3% of the tax imposed.

Consequences of Missing a Deadline

Failure to file a return or pay the tax due by the established deadline results in specific financial penalties. The state imposes a penalty of 6% per month on the amount of tax owed if the return is not filed or the payment is not made on time. This penalty accrues monthly until the tax is paid, but it is capped at a maximum of 30% of the total tax due.

A minimum penalty of $10 is applied to any late-filed return, even if no tax was collected or is due for that period. This underscores the importance of filing a “zero return” on time when there are no sales to report. In addition to penalties, interest is charged on any unpaid tax balance. The interest rate is calculated as the federal underpayment rate plus 2% and accrues from the due date until the liability is paid in full.