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.