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State of West Virginia
DEPARTMENT OF HEALTH AND HUMAN RESOURCES
Office of Inspector General
Board of Review
2699 Park Avenue, Suite 100
Huntington, WV 25704
Earl Ray Tomlin
Governor Rocco S. Lucille
Cabinet
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V stands for Value Added Tax, a type of indirect tax that is applied at each stage of the supply chain when value is added to a product.
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Businesses that exceed a certain threshold of revenue are required to file Value Added Tax (VAT) returns.
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The purpose of Value Added Tax (VAT) is to generate revenue for the government by taxing the consumption of goods and services.
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On a VAT return, businesses must report the total amount of VAT collected on sales, the total amount of VAT paid on purchases, and the difference between the two, which is the VAT liability.
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