On August 24, 2021 (released November 2021), the Virginia Department of Taxation (the Department) concluded that a provider of professional and information technology services was entitled to payroll apportionment of gross receipts for a local Business, Professional and Occupational License Tax (BPOL Tax) refund claim. Virginia localities may impose a BPOL Tax on the gross

Following a taxpayer’s assessment appeal, the Virginia Tax Commissioner determined that “easy return label” and “merchandise logo charges” were subject to Virginia sales tax.

Easy return labels
The taxpayer was a retailer of products sold online and through catalogs. The taxpayer offered its customers the option of returning merchandise using an “easy return label,” which

The Virginia Department of Taxation issued a private letter ruling on May 25, 2021, determining that a man who relocated out of Virginia as a result of a new position with his employer, but retained his Virginia driver’s license and motor vehicle registration in order to facilitate a potential return to the state in the

The Virginia Department of Taxation recently released Letter Ruling 21-59 (dated May 18, 2021), determining that Virginia-sourced wage income earned by a wife under federal nonresident alien status was taxable to a couple with part-time Virginia residency.

The couple began residing in Virginia in June 2017 and spent 199 days in the state that year. 

On April 7, 2021, Virginia H.B. 1800 was passed by the Virginia General Assembly. Included in the Budget Bill was a one-time combined unitary return reporting requirement (“Reporting Requirement”) that is intended to allow the Virginia Department of Taxation (“Department”) the ability to study the tax impact of combined reporting. Specifically, corporations that are subject

The Virginia Tax Commissioner issued a determination addressing use tax on the purchase of a software. Virginia statute provides an exemption for services not involving the exchange of tangible personal property, which provide access to or use of the internet and any other related electronic communication services including software, data, content and other information services

Virginia’s peer-to-peer vehicle sharing tax, passed in April, takes effect on October 1. Generally, vehicle owners with up to ten shared vehicles will be subject to a 6.5% gross tax. The law obligates vehicle sharing platforms to collect the tax on behalf of the owners if the platform has established sufficient contact with the state.

On August 10, the Virginia Lottery released full draft sports betting regulations for public comment. The regulations will implement H.B. 896/S.B. 384, signed into law on April 22 as Chapter 1218. The proposed regulations concern operations, internal controls, and enforcement. The Virginia Lottery Board will accept public comments regarding the regulations through September 9.

A Virginia statute gives circuit courts original jurisdiction to hear declaratory judgment actions brought by businesses to challenge another state’s assertion of sales or use tax nexus. Va. Code Ann. § 8.01-184.1. In a case of first impression, on October 9, 2019, a Virginia circuit court granted the Massachusetts Department of Revenue’s motion to dismiss

The Virginia Supreme Court held that the use of the cost-of-performance method to apportion nearly 100% of the taxpayer’s sales of services to Virginia did not violate the U.S. Constitution, even though over 95% of the taxpayer’s customers were located outside of the state – perhaps an expected result for a services company based in