Web Guide: Encyclopedia

<<Up     Contents

VAT, or Value Added Tax, is a tax levied on the sale of goods and services. The difference from conventional sales tax is that every business pays it, and it is calculated as a fraction of the value added by a business to its products. The VAT was invented because very high sales taxes and tariffs encourage cheating and smuggling. The VAT is common in countries of the European Union.

Elsewhere

Search engine
Web directory