Value added tax return

A Value Added Tax (VAT) return is a form submitted by businesses to report the VAT they have collected from customers and the VAT they have paid on purchases. This document helps calculate the net VAT owed to the government or the refund a business may claim. Businesses typically submit VAT returns quarterly or annually, detailing sales and purchases. The purpose of VAT is to tax the value added at each stage of production or distribution, making it an essential part of the tax system in many countries.