V.A.T

Question 1

What is vat

Answer 1

Vat is a consumption tax on goods and servies that is levied at each stage of the supply chain where value is added, from initial production to the point of sale

Question 2

What is the amount vat based on?

Answer 2

The amount of vat is based on the cost of the product minus any costs of materials in the product that have already been taxed at a previous stage

Question 3

Conclusion

Answer 3

VAT has to be paid after all transactions
All of the participants of the distribution chain has to pay after their added value
All of the participants pay the difference between the input and output VATs