The Value Added Tax, or V.A.T., is a general, broadly based consumption tax, assessed on the value added to goods and services. It applies, on every taxable supply, (goods or services) made within the Republic, by a taxable person in the course or furtherance of any business carried on by him, other than a supply exempted in accordance with the provisions of the Law. Additionally, V.A.T. is charged on the importation of goods into the Republic, on the acquisition of goods from other Member States and on services received from abroad.
V.A.T. is paid to the Government by each entity in the supply chain of the added value, but it is passed on to the consumer as part of the price of a good or service. The consumer is ultimately paying the tax by paying more for the product.
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