Value Added Tax

Value Added Tax

 VAT is a tax imposed on the import and supply of goods and services at each stage of production and distribution
 VAT is an indirect tax payable by the final consumer of the good or service
 This tax is imposed on most goods and services purchased and sold except those that are zero-rated (such as food and critical drugs) or that are otherwise exempt such as export
The tax is defined as value added in the sense that the tax is levied at each stage in the chain of production and distribution until final sale, hence allowing both the producer and the trader to deduct the tax on inputs