Valueadded tax definition

The amount of VAT that the user. The value-added tax, essentially an invisible sales tax included in the final price, is ultimately paid by consumers. It is levied on the price of a product or service at each stage of production, distribution or sale to the end consumer. A value-added tax (VAT or V.A.T.), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally.

It is levied at each stage in the chain of production and distribution from raw materials to the final sale based on the value (price) added at each stage.

It is not a cost to the producer or the distribution chain members, and whereas its full brunt is borne by the end consumer, it avoids the double taxation (tax on tax) of a direct sales tax. Value-Added Tax is commonly known as VAT. Revenue is raised for government by requiring certain businesses to register and to charge VAT on the taxable supplies of goods and services.

For example, the value added tax (VAT) could be an indirect supplement to the already existing personal income and corporate tax structure, which would tax the value added onto an item during each individual stage of production. VAT) a tax on consumer expenditure collected on business transactions, imports from outside the EU and acquisitions from other EU countries.

All EU countries apply VAT in accordance with the Sixth Directive. Many non-EU countries have adopted a tax very similar to VAT, e. Mexico, Russia, New Zealand and Australia.

In the VAT, tax evasion can be avoide unlike sales tax, where it is easy to fiddle with. It brings a balanced tax system in the country. It also ensures fairness and uniformity in the process.

Recommended Articles. Here we provide you the formula to calculate VAT. A value - added tax (VAT) is a consumption tax that is levied on a product repeatedly at every point of sale at which value has been added. That is, the tax is added when a raw materials producer.

Value - Added Tax is commonly known as VAT. These businesses become vendors that act as the agent for government in collecting the VAT. Anglais-Thaï - Cambridge Dictionary.

Over 1countries in different continents of the world have adopted the VAT system, with rates ranging between 10% – 25%. A tax on the value added to a product at each stage of its production, from raw materials to finished product. Widely employed in Europe, value-added taxes have the advantage (for governments) of raising revenue “invisibly,” that is, without appearing as taxes on the bill paid by the consumer.

It is charged as a percentage of the end-market price. VAT is also known as goods and services tax (GST). Value Added Tax, or VAT, is an indirect consumption tax charged on goods and services.

Foo essential medicines, and certain other items are exempted from this tax.

Le terme anglais value added tax fait référence à la Taxe sur la Valeur Ajoutée (TVA). Vale added tax est définit dans le lexique finance via la définition de Taxe sur la Valeur Ajoutée. Define value added tax.

English dictionary definition of value added tax. Value added tax (VAT), is a consumption tax levied on the sale of goods and services. In some countries, including Singapore, Australia, New Zealand and Canada, this tax is known as "goods and services tax " or GST.

A tax on the amount by which the value of an article has been increased at each stage of its production or distribution. The French and German governments have prepared a paper for the convention on the future of Europe which proposes to harmonise corporation tax and value added tax to improve the single market.

Where appropriate, a trader adds VAT to sales and must account to HMRC for the output tax. It applies more or less to all goods and services that are bought and sold for use or consumption in the European Union. From, the free encyclopedia.

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