Question

what is VAT? what is its importance?​

Answer 1

Answer:

VAT means Value Aded Tax

Answer 2

VAT is a term used to denote a tax on commodities. The value-added tax has been removed for Indian products and GST is now imposed.

Explanation:

• The value-added tax was a tax that was imposed on the value addition in the goods.
• When the goods were manufactured, they went through different levels of production which improved their value.
• Different tax rates were applied on each stage of production.
• However, VAT was discontinued, and a uniform system of taxation known as goods and service tax was implied in its place.
• The most valuable importance of VAT was that a huge amount of taxes were collected from customers in the name of VAT.