VFinance glossary

Value Added Tax (VAT)

Quick definition

A tax on the consumption of goods and services.

Overview

Value added tax (VAT) is an indirect consumption tax applied to goods and services, collected by businesses on behalf of the government.

Common uses

Calculating sale prices
Tax returns
Managing the accounts

Examples of use in small businesses

Invoicing with VAT
Reclaiming deductible VAT
Tax planning

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