                                 CODE OF VIRGINIA

FAILURE TO FILE RETURN; FRAUDULENT RETURN; CIVIL PENALTIES (§ 58.1-635)

A. 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.

B. 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.

C. Interest at a rate determined in accordance with &#xA7; 58.1-15, shall accrue
on the tax until the same is paid, or until an assessment is made, pursuant to
&#xA7; 58.1-15, after which interest shall accrue as provided therein.

D. 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&#8217;s or marketplace
facilitator&#8217;s reasonable reliance on information provided by the
Commonwealth.

HISTORY: Code 1950, § 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.