Introduction to Value Added Tax (VAT) Value Added Tax (VAT) represents a modern taxation system that imposes a tax on the added value at each stage of production and...
Introduction to Value-Added Tax (VAT)
Value-Added Tax (VAT) is one of the most important government financing tools worldwide. This tax serves as a mechanism for funding government budgets by imposing charges on the added value of goods and services at each stage of production or distribution. VAT is collected incrementally throughout the supply chain but is ultimately borne by the end consumer, making it a significant source of revenue for many governments.
Introduction to Value-Added Tax (VAT)
Value-Added Tax (VAT) is a modern tax system that imposes a tax on the added value at each stage of production and distribution. The primary goal of VAT is to create a consistent and fair method of taxation by ensuring that taxes are applied to the value added at each phase of the supply chain, from the manufacturer to the final consumer.