What is Value Added Tax (VAT)?

Modified on Fri, 12 Nov, 2021 at 10:50 AM

  • VAT is applicable to all commercial activities involving the production and sale of goods as well as services.

  • It is charged as a percentage of price, which means that the actual tax burden is visible at each stage in the production and distribution chain.

  • It is considered as indirect tax because it is paid to the revenue authorities by the seller of the goods, however, it is actually paid by end customers as part of the price. 

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