VAT

BASIC LEGAL AND REGULATORY ISSUES

It is an acronym that stands for Value Added Tax and it is a widely-used tax around the world that affects the consumption, be goods or services. It is an extra percentage to end consumer when purchasing a good or benefiting from a service. As stated by the EU, the VAT is a general tax that applies to everyone and all commercial activities, though there might be some exemptions, it is a consumption tax as it affects end-consumers, not businesses that can deduct the VAT that other businesses apply to them in a fractional way.

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