58.1-621 - Bad debts.
§ 58.1-621. Bad debts.
A. In any return filed under the provisions of this chapter, the dealer maycredit, against the tax shown to be due on the return, the amount of sales oruse tax previously returned and paid on accounts which are owed to the dealerand which have been found to be worthless within the period covered by thereturn. The credit, however, shall not exceed the amount of the uncollectedsales price determined by treating prior payments on each debt as consistingof the same proportion of sales price, sales tax and other nontaxable chargesas in the total debt originally owed to the dealer. The amount of accountsfor which a credit has been taken that are thereafter in whole or in partpaid to the dealer shall be included in the first return filed after suchcollection.
B. Notwithstanding any other provision of this section, a dealer whose volumeand character of uncollectible accounts, including checks returned forinsufficient funds, renders it impractical to substantiate the credit on anaccount-by-account basis, may, subject to the approval of the Department,utilize an alternative method of substantiating the credit.
(Code 1950, § 58-441.24; 1966, c. 151; 1974, c. 202; 1984, c. 675; 2005, c.355.)