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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.
Businesses that exceed a certain threshold of revenue are required to file Value Added Tax (VAT) returns.
To fill out a VAT return, businesses must calculate the amount of VAT collected on sales and paid on purchases, and then report this information to the tax authorities.
The purpose of Value Added Tax (VAT) is to generate revenue for the government by taxing the consumption of goods and services.
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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