One Degree Capital Blog

News, Tips and Information for Business Owners

Written by Jenn Loges

The Governor of Virginia just announced important updates to the Virginia Sales Tax that is due today. Get the latest here:

 

We are continuing to monitor the developments of COVID-19 and its impact on Virginia businesses. Details are changing daily and we are updating our information quickly.  We want to bring you the most up-to-date information as it’s happening.

Sales Tax and Your Business 

Today, March 20, is a deadline for sales tax payments. But before you write that check...

Yesterday afternoon, Virginia Governor Northam announced that, by request, they will grant 30-day extensions for those sales tax payments that are normally due today. 

Important Things to Note 

  1. It’s not automatic. You have to login and actually request the extension. Go to the Virginia Tax website, where you normally go to pay your taxes, and request that 30-day extension.  
  2. Remember, interest will still accrue. Per the Governor, this is something they cannot waive by statute. They will try and get a law passed to refund those interest amounts. But for now, the interest is going to accrue. Take an honest assessment of your finances. If you are able to make the payment, and there’s no hardship to you in making that payment, it’s best to go ahead and do it now and avoid the interest. But if the money would supplement decreased, necessary cash flow, the interest payment is probably worth it.
     

Income Tax Update 

The income tax filing date (for Virginia/individual and corporate filings) is still May 1. That date has not changed. However, any payments will not be due until June 1. This is different than the norm, as payments are usually due at the same time you file your taxes. They are granting a 30-day extension. Interest is still going to accrue between the May 1  and June 1 deadline. If you are able to pay it at the normal time, pay it to avoid the interest. 

We wish everyone the best and we will continue to bring you the latest as we learn more. In the meantime, follow me, Jenn Loges, on Linked In

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