what does vat stand for
What does VAT stand for?
Answer:
VAT stands for “Value Added Tax”. It is a type of consumption tax that is placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. VAT is usually shown on the invoice given to the customer and represents the tax on the value that has been added to the product or service. The VAT system aims to tax consumption rather than income, and it is commonly used in many countries around the world. This tax system helps the government generate revenue and also allows businesses to claim credits for the VAT they pay on the goods or services they purchase for their business activities.