What is consumer s use tax?
Consumer’s use tax is the “other half” of the Virginia retail sales and use tax requirements. Typically, you incur the consumer’s use tax if you made more than $100 in purchases during the year for which you did not pay sales tax. Common instances of these types of transactions are purchases from the Internet, mail-order catalogues and cable television shopping channels. The tax also applies to tax-free purchases you make outside of Virginia, such as buying furniture at an outlet in another state and having it shipped to Virginia. The tax is 4.5% (5% as of 9/1/04) of the cost of regular non-food purchases and 4% on purchases of food for home consumption. Report the tax by filing Form CU-7 by May 1 each year, or by reporting it on Schedule ADJ, line 23.
Related Questions
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- Wouldn a consumption tax, which reduces consumer spending, be a drag on economic growth?
