- VAT is a consumption tax placed on a product at each stage of the supply chain
- VAT operates on the “destination principle”
- Businesses are responsible for collecting and remitting VAT to the government
- VAT and sales tax differ in implementation and collection methods
- VAT rates vary widely worldwide, with recommended standard rate of 10%-20% by IMF
Source: brightsidetaxrelief.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
