Value Added Tax (VAT) is an indirect tax imposed on most goods and services bought and sold in a country. It is often referred to as a type of general consumption tax and is charged at each stage of the supply chain. Businesses act as tax collectors, collecting and accounting for VAT on behalf of the government.
The ultimate consumers bear the cost of VAT, while businesses pay the collected tax to the government and may receive refunds for the tax paid to suppliers.
VAT is implemented in over 150 countries, including EU members, Canada, New Zealand, Australia, Singapore, and Malaysia.
VAT IN UAE: