Value-added taxation is a complex area. In domestic matters surely, but exponentially so in international trade.
So, what is VAT and dow does it work? What is the difference compared to other taxes? What can we expect in future regulations? In this series, we present some of the basics in VAT.
Taxes based on consumption and directed towards end-consumers, are commonly known as value-added taxes, VAT.
The tax is generally added to the price of a particular goods or service and deductible for companies and most organisations. In some countries it comes by the name of GST, goods and services tax.
VAT is imposed in every step in the chain, production as well as distribution. Sales taxes differs significantly as it’s only imposed on the consumer. This difference turns companies into tax collectors for the government. Smart move.
Need help with managing your VAT? Vathub is at your service.