                                 CODE OF VIRGINIA

DEDUCTIONS AND DISCOUNTS ALLOWED A SUPPLIER WHEN FILING A RETURN (§ 58.1-2236)

A. The supplier may deduct from the next monthly return those tax payments that
were not remitted for the previous month to the supplier by (i) a licensed
distributor or (ii) a licensed importer who removed the motor fuel on which the
tax is due from a terminal of an elective or a permissive supplier. A supplier
shall not be liable for the tax such a licensee owes the supplier but fails to
pay. If such licensee pays the tax owed to a supplier after the supplier deducts
the amount of such tax on a return, the supplier shall remit the payment to the
Commissioner with the next monthly return filed subsequent to receipt of the
tax.

B. A supplier who timely files a return with the payment due may deduct, from
the amount of tax payable with the return, an administrative discount of
one-tenth of one percent of the amount of tax payable to the Commonwealth, not
to exceed $5,000 per month.

C. A supplier who sells motor fuel directly to an unlicensed distributor or to a
bulk user, retailer, or user of the fuel may take one-half of the same
percentage discount on the fuel that a licensed distributor may take under
subsection C of &#xA7; 58.1-2233 when making deferred payments of tax to the
supplier.

D. When filing a return, a supplier who issues or authorizes the issuance of an
exempt access card or an exempt access code to a person that enables the person
to buy motor fuel at retail without paying tax on the fuel may deduct the amount
of tax imposed on fuel purchased with the exempt access card or exempt access
code. The amount of tax imposed on fuel purchased at retail with an exempt
access card or exempt access code is the amount that was imposed on the fuel
when it was delivered to the retailer of the fuel.

HISTORY: 2000, cc. 729, 758.