Discounts

Persons who hold Virginia fuels tax licenses and who file their returns and pay their fuels tax on time may receive a discount on the taxes. In addition to the discounts, suppliers may receive credit for uncollected taxes from licensed distributors and importers.

What are the discounts?

• Percentage Discount: Suppliers may take a discount of .005 percent from their tax payments for motor fuel sold directly to users, retailers, bulk users, or unlicensed distributors.
• Administrative Discount: Suppliers and alternative fuel providers are given a .001 percent discount on their tax payments. This discount cannot exceed $5,000 per month.
• One-Percent Discount: A licensed distributor may take this discount on the amount of taxes paid to their suppliers. Licensed importers who receive motor fuel from a permissive or an elective supplier may also take this discount.

When are discounts not allowed?

The only time a discount is not allowed is:

• when a supplier fails to file their return and pay the tax on time to DMV, or
• when a licensed distributor or importer fails to pay the tax on time to the supplier, or
• when a provider of alternative fuel fails to pay the tax on time to DMV, or
• when a licensed retailer or bulk user of alternative fuel who choose to defer the tax payments fails to pay on time to the alternative fuel provider.