What is value added tax (VAT)

Value added tax in short known as VAT.
The manufacturer or importer of goods (wholesaler or stockist) was liable to pay sales tax to the government. Value added tax is the tax that is realized by the government at many points in the supply chain, right from the manufacturer to the retailer. Only the value added to the commodity at each stage is subjected to sales tax. The final incidence of sales tax remains with the consumer.

It is a tax on the value added at each transfer of goods, from the original manufacturer to the retailer.

Value added tax in short known as VAT.

The manufacturer or importer of goods (wholesaler or stockist) was liable to pay sales tax to the government. Value added tax is the tax that is realized by the government at many points in the supply chain, right from the manufacturer to the retailer. Only the value added to the commodity at each stage is subjected to sales tax. The final incidence of sales tax remains with the consumer.

It is a tax on the value added at each transfer of goods, from the original manufacturer to the retailer.