Taxes

Value added tax (vat)

Value-added tax, or VAT, is a type of turnover tax that is applied at every stage of production and distribution. While the end consumer is ultimately responsible for paying VAT, the supplier of goods or services is the one held liable. To ensure that the tax burden falls on the final consumer, VAT often uses a system of tax credits. This relieves intermediaries from the final tax cost and places it on the end consumer.

Related terms

Flat tax

Understand the meaning and definition of Flat tax in the context of stock market, trading, and investments.

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Sales tax

Understand the meaning and definition of Sales tax in the context of stock market, trading, and investments.

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Undistributed profits tax

Understand the meaning and definition of Undistributed profits tax in the context of stock market, trading, and investments.

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Destination principle

Understand the meaning and definition of Destination principle in the context of stock market, trading, and investments.

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Deficiency

Understand the meaning and definition of Deficiency in the context of stock market, trading, and investments.

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Shell company

Understand the meaning and definition of Shell company in the context of stock market, trading, and investments.

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