Administrative Code

Virginia Administrative Code
6/24/2024

Chapter 390. Virginia Soft Drink Excise Tax Regulations

23VAC10-390-10. (Repealed.)

Historical Notes

Repealed, Virginia Register Volume 23, Issue 6, eff. February 10, 2007.

23VAC10-390-20. Definition.

"Wholesaler or distributor" is defined as any person, firm or corporation who manufactures, purchases or otherwise obtains and sells carbonated soft drinks to retail dealers for resale or who sells direct to retail consumers or users or to institutional, commercial or industrial users or who distributes such soft drinks to chain stores, for use or consumption in this Commonwealth.

1. The definition of wholesaler or distributor includes a manufacturer, located either within or without Virginia, who sells carbonated soft drinks to anyone other than a "wholesaler or distributor" as defined above. Such manufacturer is subject to the excise tax even though the activity of the manufacturer may be limited to the delivery of soft drinks to a chain store's warehouse in Virginia for ultimate resale through the chain store's various retail outlets in Virginia.

a. The manufacturer, located either within or without Virginia, who sells soft drinks to a wholesaler or distributor for resale to Virginia retailers would not be subject to the tax. The wholesaler or distributor who purchased the soft drinks from the manufacturer would be subject to the tax.

2. If a chain store business, operating within and without Virginia, distributes soft drinks to its Virginia stores from its out-of-state warehouse, it would then be the distributor subject to tax.

3. A Virginia manufacturer who sells soft drinks to Virginia wholesalers or distributors would not be subject to the tax, but a Virginia manufacturer who sells to anyone other than a wholesaler or distributor, i.e., chain stores, institutional, commercial or retail users, would be subject to the tax.

4. A manufacturer, wholesaler or distributor located either within or without Virginia, who sells soft drinks at retail to consumers or users in Virginia would be the distributor subject to tax.

Statutory Authority

§§ 58.1-203 and 58.1-1701 of the Code of Virginia.

Historical Notes

Derived from VR630-26-1701, eff. January 1, 1985, with retroactive effect according to § 58.1-203.

23VAC10-390-30. (Repealed.)

Historical Notes

Derived from VR630-26-1702, eff. January 1, 1985, with retroactive effect according to § 58.1-203; repealed, Virginia Register Volume 23, Issue 6, eff. February 10, 2007.

23VAC10-390-40. Collection.

A. The soft drink excise tax is collected annually by the Department of Taxation. A payment for the amount of tax shall be made to the Department of Taxation no later than the due date prescribed in subsection B of this section.

B. Returns shall be filed with the Department of Taxation on or before the original due date for filing Virginia individual income tax returns under § 58.1-341 of the Code of Virginia, or if the taxpayer is a corporation, for filing Virginia corporate income tax returns under § 58.1-441 of the Code of Virginia.

C. A taxpayer may elect an extension of time within which to file the soft drink excise tax return to the extended due date set forth and in the manner prescribed for filing Virginia individual income tax returns on extension under § 58.1-344 of the Code of Virginia, or if the taxpayer is a corporation, for filing Virginia corporate income tax returns on extension under § 58.1-453 of the Code of Virginia.

1. If the full amount is not paid on or before the original due date, the penalty imposed by subsection D of this section for failure to pay when due the full amount shall apply regardless of whether the taxpayer properly elected to utilize an extension. Interest at the rate established pursuant to § 58.1-15 of the Code of Virginia accrues from the date the return was originally due to be filed to the date of payment.

2. If the return is not filed or the full amount of the tax due is not paid on or before the extended due date elected pursuant to this subsection, the penalty imposed by subsection D of this section for failure to file a return and for late filing shall apply as if no extension had been elected.

D. Subject to subsection C of this section, penalties are imposed for failure to file a return, for late filing, for filing a false or fraudulent return, and for failure to make full payment of the taxpayer's actual tax liability on or before the original return due date.

1. If the taxpayer is not a corporation, the nature and amount of the penalties imposed by this subsection shall be determined as if the comparable individual income tax penalties under §§ 58.1-347, 58.1-348, and 58.1-351 of the Code of Virginia apply to the soft drink excise tax rather than the individual income tax.

2. If the taxpayer is a corporation, the nature and amount of the penalties imposed by this subsection shall be determined as if the comparable corporate income tax penalties under §§ 58.1-450, 58.1-451, 58.1-452, and 58.1-455 of the Code of Virginia apply to the soft drink excise tax rather than the corporate income tax.

3. Interest is assessed on tax and applicable penalties in accordance with § 58.1-15 of the Code of Virginia.

Statutory Authority

§§ 58.1-203 and 58.1-1703 of the Code of Virginia.

Historical Notes

Derived from VR630-26-1703, eff. January 1, 1985, with retroactive effect according to § 58.1-203; amended, Virginia Register Volume 35, Issue 7, eff. February 11, 2019.

23VAC10-390-50. (Repealed.)

Historical Notes

Derived from VR630-26-1704, eff. January 1, 1985, with retroactive effect according to § 58.1-203; repealed, Virginia Register Volume 23, Issue 6, eff. February 10, 2007.

FORMS (23VAC10-390).

Soft Drink Excise Tax Return, Form 404 (rev. 9/05).

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