08/12/2023
What is VAT?
VAT stands for Value Added Tax. It is a tax that is added to the price of goods and services at each stage of production and distribution, ultimately paid by the end consumer. The VAT system is used in many countries around the world, including the European Union, Canada, and Australia specially in UK. Businesses that are registered for VAT charge VAT on their sales and can also reclaim VAT that they have paid on their purchases. The difference between the VAT charged on sales and the VAT paid on purchases is usually paid to the government on a regular basis.