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Fuels Tax - Frequently Asked Questions (FAQs)

As a supplier, can I take the .005 percent discount on fuel delivered to stations owned by my company?
No. Virginia law does not allow the discount for intra-company transactions.
When can my supplier draft my account for the fuels taxes that I owe?
If you are a licensed distributor or an importer, you are not required to pay the supplier until the day the supplier is required to pay the tax to DMV. Therefore, your account cannot be drafted until that day.
The accounts of other persons would be drafted in accordance with their agreements with the suppliers.
Can I make my tax payments to DMV electronically?
DMV accepts electronic payments online as well as through the Automated Clearinghouse (ACH) credit and debit formats, e-check, cash, check, or money order. For more information on electronic payment options, see Paying Fuels Tax.
Why do exporters need registered agents?
Virginia law requires exporters and others to have a Virginia registered agent. The agent acts as a representative of the business should DMV be required to serve legal notice to the business.
Why does DMV give the federal government different exemptions than state or local governments?
The fuel tax exemptions for federal, state, and local governments are the same. Purchases by state and local government are subject to the Virginia Petroleum Storage Fee (Tank Fee).
Why do some licensees have to file tax security with DMV and some don't?
The purpose of filing tax security is to assure that DMV receives the tax owed to Virginia should there be a default in payment. Licensees who pay tax directly to DMV, who receive the One Percent Discount, or who defer tax payment are required to file tax security.
Can an aviation consumer sell fuel to another aviation consumer tax free?
No. Aviation consumers can receive tax free fuel only from a supplier or a licensed distributor.
Can I receive credit for unpaid taxes?
If you are a licensed distributor or an importer, you can NOT receive credit from DMV for taxes that customers fail to pay after December 31, 2000. Collection of the tax is strictly a business arrangement between you and your customer.
Suppliers can be given a credit for taxes that a licensed distributor or an importer fails to pay. Providers of alternative fuel can receive credit for taxes that a bonded bulk user of alternative fuel or a bonded retailer of alternative fuel fails to pay.
How do I get the credit for the unpaid taxes?
If you are a supplier or a provider of alternative fuel, you must:
  1. notify DMV of the default by submitting a Notice of Tax Payment Default form (FT214) within 10 business days from the date you were required to pay the taxes to DMV, and
  2. provide the default information on your NEXT monthly report.
Note: You may deduct those tax payments that were not remitted by a licensed distributor or importer from your next monthly report.