Is Your Company Paying Too Much Virginia BPOL?
The Virginia business, professional, and occupational license (BPOL) tax is a local option tax on the privilege of doing business within a locality. If your company has a place of business in Virginia, it most likely is subject to the BPOL. However, there are exemptions and other issues/questions your company should examine to determine if it is paying too much BPOL, such as:
- Is the activity your business is conducting a "licensable activity"?
- Do any exemptions apply to your business?
- Is your company operating multiple businesses which require multiple licenses?
- How is your company handling transactions between affiliated entities?
- How does your company determine the amount of gross receipts to be included in the tax base?
- Is your company utilizing the "interstate receipts" deduction correctly?
- Is your company "sourcing" it's sales accurately?
- Is your company able to apportion it's sales?
- Has your company properly classified it's business activity?
If your company hasn't reviewed it's BPOL compliance closely, it may be time to take a second look.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.