{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-635.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-635.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-635.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-635.html"}],"law_id":71272,"edition_id":1,"section_id":71272,"structure_id":12899,"section_number":"58.1-635","catch_line":"Failure to file return; fraudulent return; civil penalties","history":"Code 1950, \u00a7 58-441.27; 1966, c. 151; 1972, c. 355; 1973, c. 269; 1975, c. 52; 1977, c. 396; 1984, c. 675; 1991, cc. 316, 331; 2013, c. 766; 2019, cc. 815, 816, 854.","full_text":"A\n\nWhen any dealer fails to make any return and pay the full amount of the tax required by this chapter, there shall be imposed, in addition to other penalties provided herein, a specific penalty to be added to the tax in the amount of six percent if the failure is for not more than one month, with an additional six percent for each additional month, or fraction thereof, during which the failure continues, not to exceed 30 percent in the aggregate. In no case, however, shall the penalty be less than $10 and such minimum penalty shall apply whether or not any tax is due for the period for which such return was required. If such failure is due to providential or other good cause shown to the satisfaction of the Tax Commissioner, such return with or without remittance may be accepted exclusive of penalties. In the case of a false or fraudulent return where willful intent exists to defraud the Commonwealth of any tax due under this chapter, or in the case of a willful failure to file a return with the intent to defraud the Commonwealth of any such tax, a specific penalty of 50 percent of the amount of the proper tax shall be assessed. All penalties and interest imposed by this chapter shall be payable by the dealer and collectible by the Tax Commissioner in the same manner as if they were a part of the tax imposed.B\n\nIt shall be prima facie evidence of intent to defraud the Commonwealth of any tax due under this chapter when any dealer reports its gross sales, gross proceeds or cost price, as the case may be, at 50 percent or less of the actual amount.C\n\nInterest at a rate determined in accordance with § 58.1-15, shall accrue on the tax until the same is paid, or until an assessment is made, pursuant to § 58.1-15, after which interest shall accrue as provided therein.D\n\nNotwithstanding any other provision of this section, any remote seller or marketplace facilitator that has collected an incorrect amount of sales and use tax shall be relieved from liability for such amount, including any penalty or interest, if the error is a result of the remote seller’s or marketplace facilitator’s reasonable reliance on information provided by the Commonwealth.","order_by":null,"text":{"0":{"id":256871,"text":"When any dealer fails to make any return and pay the full amount of the tax required by this chapter, there shall be imposed, in addition to other penalties provided herein, a specific penalty to be added to the tax in the amount of six percent if the failure is for not more than one month, with an additional six percent for each additional month, or fraction thereof, during which the failure continues, not to exceed 30 percent in the aggregate. In no case, however, shall the penalty be less than $10 and such minimum penalty shall apply whether or not any tax is due for the period for which such return was required. If such failure is due to providential or other good cause shown to the satisfaction of the Tax Commissioner, such return with or without remittance may be accepted exclusive of penalties. In the case of a false or fraudulent return where willful intent exists to defraud the Commonwealth of any tax due under this chapter, or in the case of a willful failure to file a return with the intent to defraud the Commonwealth of any such tax, a specific penalty of 50 percent of the amount of the proper tax shall be assessed. All penalties and interest imposed by this chapter shall be payable by the dealer and collectible by the Tax Commissioner in the same manner as if they were a part of the tax imposed.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":256872,"text":"It shall be prima facie evidence of intent to defraud the Commonwealth of any tax due under this chapter when any dealer reports its gross sales, gross proceeds or cost price, as the case may be, at 50 percent or less of the actual amount.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":256873,"text":"Interest at a rate determined in accordance with § 58.1-15, shall accrue on the tax until the same is paid, or until an assessment is made, pursuant to § 58.1-15, after which interest shall accrue as provided therein.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":256874,"text":"Notwithstanding any other provision of this section, any remote seller or marketplace facilitator that has collected an incorrect amount of sales and use tax shall be relieved from liability for such amount, including any penalty or interest, if the error is a result of the remote seller’s or marketplace facilitator’s reasonable reliance on information provided by the Commonwealth.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":12899,"edition_id":1,"name":"Retail Sales and Use Tax","identifier":"6","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:43:59","date_modified":"2026-06-26 03:43:59","permalink":{"id":254543,"object_type":"structure","relational_id":12899,"identifier":"6","token":"58.1\/I\/6","url":"\/58.1\/I\/6\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 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limitations","url":"\/58.1-634\/","token":"58.1\/I\/6\/58.1-634","metadata":false},"next_section":{"id":86637,"structure_id":12899,"section_number":"58.1-636","catch_line":"Penalty for failure to file return or making false return","url":"\/58.1-636\/","token":"58.1\/I\/6\/58.1-636","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-635\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 9 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1966, chapter 151; in 1972, chapter 355; in 1973, chapter 269; in 1975, chapter 52; in 1977, chapter 396; in 1984, chapter 675; in 1991, chapters 316 and 331; in 2013, chapter 766<\/a>; in 2019, chapters 815<\/a>, 816<\/a>, and 854<\/a>.<\/p>","references":[{"id":78838,"section_number":"58.1-3510.7","catch_line":"Exemptions; penalties","order_by":null,"url":"\/58.1-3510.7\/"}],"refers_to":[{"id":77006,"section_number":"58.1-15","catch_line":"Rate of interest","order_by":null,"url":"\/58.1-15\/"}],"permalink":{"id":254845,"object_type":"law","relational_id":71272,"identifier":"58.1-635","token":"58.1\/I\/6\/58.1-635","url":"\/58.1-635\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-635\/","token":"58.1\/I\/6\/58.1-635","dublin_core":{"Title":"Failure to file return; fraudulent return; civil penalties","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-635","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> When any dealer fails to make any return and pay the full amount of the tax required by this chapter, there shall be imposed, in addition to other penalties provided herein, a specific penalty<\/span> to be added to the tax in the amount of six percent if the failure is for not more than one month, with an additional six percent for each additional month, or fraction thereof, during which the failure continues, not to exceed 30 percent in the aggregate. In no case, however, shall the penalty<\/span> be less than $10 and such minimum penalty<\/span> shall apply whether or not any tax is due for the period for which such return was required. If such failure is due to providential or other good cause shown to the satisfaction of the Tax Commissioner<\/span>, such return with or without remittance may be accepted exclusive of penalties. In the case of a false or fraudulent return where willful intent<\/span> exists to defraud the Commonwealth of any tax due under this chapter, or in the case of a willful failure to file a return with the intent<\/span> to defraud the Commonwealth of any such tax, a specific penalty<\/span> of 50 percent of the amount of the proper tax shall be assessed. All penalties and interest imposed by this chapter shall be payable by the dealer and collectible by the Tax Commissioner<\/span> in the same manner as if they were a part of the tax imposed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> It shall be prima facie evidence<\/span> of intent<\/span> to defraud the Commonwealth of any tax due under this chapter when any dealer reports its gross sales<\/span>, gross proceeds<\/span> or cost price<\/span>, as the case may be, at 50 percent or less of the actual amount. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Interest at a rate determined in accordance with § 58.1-15<\/a>, shall accrue on the tax until the same is paid, or until an assessment is made, pursuant to § 58.1-15<\/a>, after which interest shall accrue as provided therein. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Notwithstanding any other provision of this section, any remote seller<\/span> or marketplace facilitator that has collected an incorrect amount of sales and use<\/span> tax shall be relieved from liability for such amount, including any penalty<\/span> or interest, if the error is a result of the remote seller<\/span>’s or marketplace facilitator’s reasonable reliance on information provided by the Commonwealth. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFAILURE TO FILE RETURN; FRAUDULENT RETURN; CIVIL PENALTIES (\u00a7 58.1-635)\n\nA. When any dealer fails to make any return and pay the full amount of the tax\nrequired by this chapter, there shall be imposed, in addition to other penalties\nprovided herein, a specific penalty to be added to the tax in the amount of six\npercent if the failure is for not more than one month, with an additional six\npercent for each additional month, or fraction thereof, during which the failure\ncontinues, not to exceed 30 percent in the aggregate. In no case, however, shall\nthe penalty be less than $10 and such minimum penalty shall apply whether or not\nany tax is due for the period for which such return was required. If such\nfailure is due to providential or other good cause shown to the satisfaction of\nthe Tax Commissioner, such return with or without remittance may be accepted\nexclusive of penalties. In the case of a false or fraudulent return where\nwillful intent exists to defraud the Commonwealth of any tax due under this\nchapter, or in the case of a willful failure to file a return with the intent to\ndefraud the Commonwealth of any such tax, a specific penalty of 50 percent of\nthe amount of the proper tax shall be assessed. All penalties and interest\nimposed by this chapter shall be payable by the dealer and collectible by the\nTax Commissioner in the same manner as if they were a part of the tax imposed.\n\nB. It shall be prima facie evidence of intent to defraud the Commonwealth of any\ntax due under this chapter when any dealer reports its gross sales, gross\nproceeds or cost price, as the case may be, at 50 percent or less of the actual\namount.\n\nC. Interest at a rate determined in accordance with § 58.1-15, shall accrue\non the tax until the same is paid, or until an assessment is made, pursuant to\n§ 58.1-15, after which interest shall accrue as provided therein.\n\nD. Notwithstanding any other provision of this section, any remote seller or\nmarketplace facilitator that has collected an incorrect amount of sales and use\ntax shall be relieved from liability for such amount, including any penalty or\ninterest, if the error is a result of the remote seller’s or marketplace\nfacilitator’s reasonable reliance on information provided by the\nCommonwealth.\n\nHISTORY: Code 1950, \u00a7 58-441.27; 1966, c. 151; 1972, c. 355; 1973, c. 269;\n1975, c. 52; 1977, c. 396; 1984, c. 675; 1991, cc. 316, 331; 2013, c. 766; 2019,\ncc. 815, 816, 854.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}