What is VAT?

Logo for MGI Worldwide. 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.

MGI Worldwide LogoMGI Worldwide is a network of independent audit, tax, accounting and consulting firms. MGI Worldwide does not provide any services and its member firms are not an international partnership. Each member firm is a separate entity and neither MGI Worldwide nor any member firm accepts responsibility for the activities, work, opinions or services of any other member firm. For more information visit www.mgiworld.com/legal.

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