Could anyone help me to clarify the concept VAT? It is a form of sales tax..am I right? thanks in advance.
Tue Mar 07, 2006 4:38 am
coaster Senior Advisor
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Yes, if it's applied at the point of sales. Depending on how the tax is implemented, it could also be applied at each stage of the process from producer to consumer, at the point where "value is added." Here's a definition from Investopedia:
Thanks coaster. That is an useful one. But dont you think that raises the price level of the commodity product and there is enough scope to evade the tax in terms of the settlement b/n the buyer and the seller?
Thu Mar 09, 2006 4:37 am
coaster Senior Advisor
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Yes and maybe. In the case of a private transaction, end use VAT can be easily avoided.
~Tim~
Thu Mar 09, 2006 1:35 pm
discountdomains New Member
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VAT
Value added tax is a tax on the increase in value of a service or product.
Organisation that are VAT registered can claim back VAT on their purchases or inputs, but have to charge VAT on their sales or outputs.
Its basically a way of having companies collect tax on the value they create.
( Its also a very unpopular Tax in the UK)
Clare
Tue Mar 21, 2006 4:29 pm
financechoices Senior Member
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VAT is set to bring in around £76bn for the government this year, or 14% of all tax income.
