What is consumers 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 5% 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.
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.
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 5% 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 21.
” The actual return and instructions (in PDF format) are here (http://www.tax.state.va.us/Web_PDFs/indForms/currentyear/cu7-2002.pdf). And the fact that the FFL has nexus in the state seems to be justification for Virginia’s tax people to require them to collect the tax…as posted earlier, they require it for nexus-holders when they sell within the state. I don’t know about the parallel between the FFL and a delivery service like UPS, but it seems to me it’s cost-prohibitive to require UPS to do it since they deliver many other things besides goods purchased out of state. The percentage of things transferred via FFL may be higher. I don’t know, and I hope the tax people don’t either. 🙂 In short…yes, it bites. And yes, I hope VA Arms doesn’t run afoul of anything, as it is a good shop.
Consumer’s use tax is a complement to the Nebraska sales tax. It is imposed on the storage, use, distribution, or consumption of tangible personal property and certain services purchased by the end user when Nebraska sales tax has not been paid. An example is a delivery into Nebraska from an out-of-state seller. See Sales and Use Tax Regulation 1-002 for additional information.
