US Virgin Islands gross receipts tax reference using the August 2026 monthly return and the currently linked annual return. Covers the receipts base, five-percent rate, monthly exemption calculation, filing categories, deadlines, sole-proprietor consolidation, zero returns and documented government withholding. Includes examples showing why the monthly exemption is not an annual pooled deduction. Explicitly distinguishes the annual-filing boundary from the exemption wording at exactly 225,000 dollars. Uses official BIR forms while leaving the complete statutory amendment audit outstanding. Does not establish incentives, nexus, special-sector exemptions or the right to charge customers a separate tax. Independent accountant review remains pending.
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Accountant-authored. Written and published by Ryan Duguid, an accountant approved on OpenAccountants. Their licence number is not on file. Their registration is in Australia; this skill covers VI. General reference material, not advice on your specific facts; don't file, pay, or take a position on it without a professional reviewing your situation.
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| Question | Official form wording |
|---|---|
| Monthly return | Annual gross receipts more than $225,000: Form 720 V.I. |
| Annual return | Annual gross receipts $225,000 or less: Form 720-B |
| Ordinary monthly exemption | Businesses with annual gross receipts less than $225,000 pay 5% on receipts exceeding $9,000 each month |
This Guide uses BIR's Form 720 V.I., revision August 2026, obtained from its official forms directory. The directory lists a revision date of 27 August 2026 and the downloaded PDF itself says 08/2026. It is distinct from older indexed monthly forms dated 2012.
The form instructions describe a 5% tax on total receipts from business conducted within the USVI, without deducting business expenses. This is a receipts calculation, not a tax on accounting profit. The source points to Title 33 VIC sections 42 and 43, but the complete current statutory text and amendment chain have not yet been reconciled for this draft. Current form, page 2.
| Question | Official form wording |
|---|---|
| Monthly return | Annual gross receipts more than $225,000: Form 720 V.I. |
| Annual return | Annual gross receipts $225,000 or less: Form 720-B |
| Ordinary monthly exemption | Businesses with annual gross receipts less than $225,000 pay 5% on receipts exceeding $9,000 each month |
Source: August 2026 monthly instructions. The currently linked annual form also uses $225,000 or less for annual filing.
Exactly $225,000 is expressly within the annual-filing category, but the exemption instruction uses less than. Do not infer exemption entitlement at equality from the return category. Obtain the current statutory treatment or BIR clarification before resolving a case at that boundary. The form's first page also retains a generic $5,000-or-$9,000 exemption label; the ordinary qualifying-business examples here use the specific $9,000 monthly instruction, not an invented choice between the figures.
Assume a business with annual gross receipts below $225,000 that qualifies for the ordinary $9,000 monthly exemption, with no special exemption or credit:
| Monthly gross receipts | Exemption used | Taxable receipts | Tax at 5% |
|---|---|---|---|
| $8,000 | $8,000 | $0 | $0 |
| $9,000 | $9,000 | $0 | $0 |
| $15,000 | $9,000 | $6,000 | $300 |
| $20,000 | $9,000 | $11,000 | $550 |
For eleven months at $8,000 and one at $20,000, annual receipts total $108,000 but tax is $550. Replacing twelve monthly calculations with a pooled $108,000 annual exemption would incorrectly produce zero. Form 720-B has separate monthly rows and calls for the monthly exemption. Annual form; current monthly instructions.
For an ordinary monthly filer with $40,000 gross receipts, established exemption entitlement of zero and no withholding or credit, tax is $2,000. Deducting $30,000 of operating costs to tax only $10,000 would not follow the gross-receipts basis. This example assumes the receipts are within scope and no special exemption applies.
The August 2026 monthly instructions require postmark or submission within 30 calendar days after the last day of the month. The annual form requires filing and payment within 30 days after the end of the year reported. Do not replace a 30-day rule with an automatic last-day-of-next-month rule. Calendar and fiscal-year selection, extensions and any special deadline relief need separate confirmation for the taxpayer. Monthly instructions; annual return note.
The monthly instructions require a zero or NONE return when no tax is due for the indicated period. They also require a sole proprietor operating more than one business to file a consolidated return. Do not multiply the ordinary exemption by the number of that proprietor's businesses without statutory authority. Form 720 V.I., page 2.
The current form separately deducts upfront gross receipts tax withheld by the Virgin Islands government and then other overpayment credits. For $2,000 calculated tax and $500 documented government withholding, the adjusted tax before other items is $1,500. Keep the withholding evidence and receipt reconciliation as recommended working papers. The form lists late-payment penalty at 5% per month capped at 25%, and interest at 1% per month; the complete statutory assessment, partial-month and relief rules require further verification before a penalty computation. Form 720 V.I., pages 1–2.
This draft does not establish nexus for remote sellers or contractors, special-sector exclusions, EDC or other incentive eligibility, reimbursement/pass-through treatment, authority to show tax separately on customer invoices, or the complete statute. The annual PDF is dated September 2013 despite still being linked by BIR. Its current application and the statutory amendment chain need independent review. Checked 22 October 2026; no complete-territory or accountant-attestation claim.
Contributed by Ryan Duguid.
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