West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-15 - Consumer Sales And Service Tax And Use Tax
Section 110-15-14 - Maintenance of Records
Universal Citation: 110 WV Code of State Rules 110-15-14
Current through Register Vol. XLI, No. 38, September 20, 2024
14.1. Sales and Service Tax Records.
14.1.1.
Keeping and Preserving Records. - Each person shall keep complete and accurate
records of taxable sales and of charges, together with a record of the tax
collected thereon, and shall keep all invoices, bills of lading and such other
pertinent documents in such form as the Tax Commissioner may require. Such
records and other documents shall be preserved for a period of time not less
than three years, unless the Tax Commissioner shall consent in writing to their
destruction within that period or by order require that they be kept longer.
Records must be kept so long as the period is open to assessment or refund. Any
person who fails to maintain appropriate records shall be subject to the
provisions of W. Va. Code '11-9-1
et seq.
14.1.1.1. For those transactions in
which the purchaser provides to the vendor the direct payment permit number or
material purchase certificate number, the vendor shall retain a record copy of
the invoice with the direct payment permit number or material purchase
certificate number, as applicable, printed thereon.
14.1.2. When Separate Records of Sales
Required. - Any vendor engaged in a business subject to the consumers sales and
service tax, who is at the same time engaged in some other kind of business,
occupation or profession, not subject to such tax, shall keep records to show
separately the transactions used in determining the tax base for the sales and
services taxed. In the event such person fails to keep such separate records
there shall be levied upon him a tax based upon the entire gross proceeds of
both or all of his businesses.
14.1.3. Sales to Affiliated Companies or
Persons. - In determining gross proceeds of sales of tangible personal property
or services other than services exempt under Section 9.3.12 of these
regulations from one to another of affiliated companies or persons, or under
other circumstances where the relation between the buyer and seller is such
that the gross proceeds from a sale are not indicative of the true value of the
subject matter of the sale, the tax shall be based upon the fair market value
as if in a transaction involving a willing buyer and a willing seller, with
neither buyer nor seller being required to act.
14.1.3.1. In those instances where fair
market value is not available, determining value in regard to sales from one to
another of affiliated companies or persons, or under other circumstances where
the relation between the vendor and vendee is such that gross proceeds from the
sale are not indicative of the true value of the subject matter of the sale,
the following rules shall be applied in the order stated.
14.1.3.1.a. Whenever sales are made to
affiliates, the value shall correspond to the gross proceeds from the sale of
similar products or services of like quality and character and in similar
quantities between persons of no common interest.
14.1.3.1.b. If there are no sales between
parties of no common interest by which the taxpayer may value his sales to
affiliates, the value shall correspond to the gross proceeds from sales by the
taxpayer to nonrelated purchasers of similar products or services of like
quality and character and in similar quantities and shall include all subsidies
and bonuses.
14.1.3.1.c. In the
absence of sales as a guide to value, such value may be determined by a cost
basis. In such cases there shall be included every item of cost attributable to
the particular article manufactured, including direct and indirect overhead
costs. There shall be added to this total manufacturing cost the average markup
realized by the taxpayer on all products manufactured, compounded or prepared
for sale.
14.1.4. Records of Nonresidents Doing
Business in State. - A nonresident person or foreign corporation engaged in a
business within this State in the conduct of which the consumers sales and
service tax levied becomes due, shall keep within this State adequate records
concerning the operation of the business, and all consumers sales and service
taxes collected in the course of the business. The amount of the consumers
sales and service tax collected shall not be transmitted outside of this State
without the written consent of, and in accordance with the conditions
prescribed by, the Tax Commissioner.
14.2. Use Tax Records.
14.2.1. Keeping and Preserving Records. -
Every retailer required or authorized to collect use taxes and every person
using in this State tangible personal property or taxable services shall keep
such records, receipts, invoices, and other pertinent papers as the Tax
Commissioner shall require and in such form as the Tax Commissioner shall
require. For those transactions in which the retailer provides to the vendor
the direct payment permit number or material purchase certificate number, the
vendor shall retain a record copy of the invoice with the direct payment permit
number or material purchase certificate number, as applicable, entered thereon.
Any person who fails to maintain appropriate records shall be subject to the
provisions of W. Va. Code '11-9-1
et seq.
14.2.2. Examination of
Records. - In addition to the Tax Commissioner's powers set forth in W. Va.
Code '11-10-1 et
seq., the Tax Commissioner is hereby authorized to examine the books, papers,
records and equipment of any person who either:
14.2.2.1. Is selling tangible personal
property or taxable services; or
14.2.2.2. Is liable for the use tax. The Tax
Commissioner may investigate the character of the business of any such person
in order to verify the accuracy of any return made, or if no return was made by
such person, to ascertain and determine the amount of use tax due. Any such
books, papers and records shall be made available within this State for such
examination upon reasonable notice. However, where the taxpayer's records must
be kept out-of-state, the taxpayer may upon being notified by the Tax
Commissioner that an examination is to be made, elect to do one of the
following:
(1) forthwith transport the
required records to a convenient point in West Virginia and notify the Tax
Commissioner of the location where such records are available; or
(2) pay the reasonable traveling expenses of
the Tax Commissioner's representatives from Charleston, West Virginia, to the
out-of-state place where the records are kept, and the return of such
representative to Charleston, West Virginia, and reasonable living expenses of
such representatives while engaged in the examination of such
records.
Disclaimer: These regulations may not be the most recent version. West Virginia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
