Question

Write a brief note on Value added tax.

Answer 1

Answer:

A value-added tax (VAT) is a consumption tax levied on products at every point of sale where value has been added, starting from raw materials and going all the way to the final retail purchase. ... For example, if a product costs $100 and there is a 15% VAT, the consumer pays $115 to the merchant.

Explanation:

hope it helps u

:)

Answer 2

Explanation:

A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution or sale to the end consumer, except where a business is the end consumer which will reclaim this input value. It is similar to and is often compared to a sales tax.

VAT essentially compensates for the shared service and infrastructure provided in a certain locality by a state and funded by its taxpayers that were used in the elaboration of that product or service. Not all localities require VAT to be charged and exports are often exempt. VAT is usually implemented as a destination-based tax, where the tax rate is based on the location of the consumer and applied to the sales price. The terms VAT, GST, and the more general and consumption tax are sometimes used interchangeably. VAT raises about a fifth of total tax revenues both worldwide and among the members of the Organisation for Economic Co-operation and Development (OECD).[1]:14 As of 2018, 166 of the 193 countrieswith full UN membership employ a VAT, including all OECD members except the United States,[1]:14 where many states use a sales tax system instead.