The issue of inclusion of the VAT in the receipts factor has not been addressed on a department wide basis.
State includes foreign countries for the purposes of formula apportionment.
A value added tax is a tax assessed on goods and services on the value added by each producing unit. The value added tax is essentially a tax on the sale of goods as well as a consumption tax. The VAT and sales tax are very similar. Accordingly, we will include the VAT in the receipts factor. This procedure statement does not address the amount to include in the factor, the level of substantiation required or other issues.