Laserfiche WebLink
Sec. 20-5.4. Gross receipts; exclusions and deductions. <br /> <br /> (a) General Rule. Gross receipEs for license tax <br />purposes shall not include any amounm not derived from the <br />exercmse of uhe licensed privilege to engage in a business or <br />profession mn the ordinary course of business or profession. <br /> <br /> (b) The following items shall be excluded from gross <br />receipts: <br /> <br /> (1) Amounns received and paid to the United States, the <br />Commonwealth or any county, city or mown for mhe Virginia <br />retail sales or use max, or for any local sales max or any <br />local excmse max on cigaremmes, for any federal or state excise <br />maxes on momor fuels. <br /> <br /> (2) Any amounm representing the liquidation of a debt or <br />conversmon of anomher assem to the extent that the amounm is <br />attributable no a mransaction previously taxed (e.g., the <br />factoring of accounns receivable created by sales which have <br />been included in taxable receipms even though the creation of <br />such debt and factoring are a regular parm of its business). <br /> <br /> (c) Any amount representing remurns and allowances <br />granted by the business co mms cusmomer. <br /> <br /> (d) Receipms which ~re the proceeds of a loan <br />transaction in which the licensee ms the obligator. <br /> <br /> (e) Receipns representing the return of prmncipal o~ a <br />loan transaction in which the licensee is the creditor, or the <br />remurn of principal or basis upon the sale of a capital asset. <br /> <br /> (f) Rebates and discounts taken or received on accounm <br />of purchases by the licensee. A rebame or other incentive <br />offered no induce the recipient mo purchase certain goods or <br />services from a person other than the offeror, and which the <br />recmpient assigns mo the licensee in consideration of the sale <br />of goods and servmces shall non be considered a rebate Dr <br />discount co the licensee, but shall be included mn the <br />licensee's gross receipts mogether with any handling or other <br />fees related mo the incentive. <br /> <br /> (g) withdrawais from invenEory for purposes other than <br />sale or distribution and for which no consideration ms received <br />and the occasional sale or exchange of assems other than <br />inventory, whether or non a gain or loss is recognized for <br />federal income max purposes. <br /> <br />11 <br /> <br /> <br />