VAT Value Added Tax. A tax ultimately paid by the consumer. A cumulative tax, in that at each stage of value addition as the commodity passes from one manufacturer to another, the tax has to be paid, e.g. raw material to paint manufacture, paint manufacturer to car body builder, from car body builder to the auto manufacturer, and finally from him to the ultimate user. VAT is added to all goods and services.

You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.

Powered by WordPress