June 29, 2017

What is VAT?

To date, there are 122 worldwide jurisdictions that employ a Value Added Tax (VAT) known in some countries as a Goods and Services Tax (GST). VAT/GST is a levy on consumption that taxes the value added to a product or service by businesses at each stage of production and at final sale. Businesses along the chain collect the tax and send it to the government. Ultimately, it is the consumer who pays the tax, because the final price of the goods and services they buy reflects all of the taxes that have been charged up to that point.

If you are selling goods or services in countries that have a VAT, you may be required to file VAT tax reporting forms. Further if you or your business has paid VAT, you may be eligible for a refund of those taxes. If you have any questions about VAT please contact RINA.


 
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