According to the European Commission website, the Value Added Tax (VAT) is a consumption tax charged on the majority of goods and services to be used or consumed by the customer.
Other People Are Reading
A VAT return is made up of the total VAT charged by a business and the total VAT paid by the business to suppliers. The My Business website explains the difference between the two amounts is either paid by the business if its incoming payments outnumber outgoing payments or claimed as a refund when outgoing VAT is higher than incoming.
According to the My Business website, VAT returns are paid at regular intervals throughout the year, usually quarterly. VAT returns are filed with and checked by a government taxation agency.
The European Commission reports that VAT is added to goods sold within a country, such as the U.K. Goods imported into the country are charged VAT to allow domestic businesses to better compete with importers. However, exported goods are not charged VAT, as they are not consumed in the territory.
- 20 of the funniest online reviews ever
- 14 Biggest lies people tell in online dating sites
- Hilarious things Google thinks you're trying to search for