Maximizing Profits: Why VAT Registration Is a Must for Small Businesses
“Value Added Tax” (more commonly shortened to “VAT”) refers to a type of consumption tax calculated by the amount of value added to goods and services during their lifetime. The value-added tax is known by several other names, but most people just call it VAT. Whereas sales tax is only ever collected once, at the moment of sale to the final customer, VAT is collected several times along the supply chain. Value-added tax (VAT) is owed by consumers, but it is the obligation of businesses to collect and remit VAT to the government.