Introduction to VAT
What is VAT?
Value Added Tax, commonly known as
VAT, is a consumption tax levied on goods and services at each stage of
production or distribution. It's a vital source of revenue for many governments
worldwide and is typically included in the price paid by consumers.
Importance of Understanding VAT
Understanding VAT is crucial for
both businesses and consumers. For businesses, proper VAT management ensures
compliance with legal requirements and can affect profitability. For consumers,
knowing how VAT works helps in understanding pricing structures and making
informed purchasing decisions.
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