Value Added Tax (VAT) is an indirect tax levied on consumers that applies in many countries.
This tax is levied on the value of goods and services and on the added value generated during production and distribution. Value-added tax is levied additionally when consumers purchase goods or services, and sellers must collect this tax and then remit it to the government.
Find out about the VAT features below.
Value-added tax is a tax levied indirectly during the production and distribution process. This only applies when consumers purchase goods or services, so consumers do not pay taxes directly to the government.
VAT rates may vary in each country and region. Generally, different tax rates apply depending on the type of goods and services. 부가세계산기
Some countries do not impose taxes on consumption below a certain amount.
Tax collection and payment
When selling goods or services, sellers additionally charge and collect value-added tax from consumers.
The seller must then pay the VAT to the government.
Value-added tax is a tax on the added value generated when a seller provides goods or services.
The seller deducts the value-added tax on the goods or services he or she purchases and pays it to the government. This process may result in a tax refund.
VAT plays an important role in the country’s economic system. And it is one of the main means of generating revenue for the government.