Definition of Value Added Tax

The tax Value added (VAT) is a tax or rate What is charged on the acquisition of products and services or on other operations in different countries of the world.

The VAT or value added tax is a common rate in Latin American and European countries that takes place in the purchase of goods and services as a form of collection by the State on the consumer final.
It is an indirect tax, insofar as the corresponding tax entity does not receive it in a linear or direct way, but depends on the payment of this tribute by each of the intermediaries involved in the sale of a product. In other words, each member of the value chain must pay the immediately preceding member a load or Tax that is attached to the price of the product and is then collected in its proportional form by the member successor. The consumer or Username The end is, ultimately, the one who takes charge of the tax. The rest of the actors must be accountable to the tax body for the VAT paid (or tax credit) and the VAT collected (or

debit fiscal), in order to settle the difference between the two.

Calculating the VAT on a product is a simple mathematical operation. Knowing the percentage that is added to the purchase, for example 10 or 15%, the consumer must simply multiply the price of the product by the value and then divide it by 100. In this way, you obtain the amount of the tax you must pay.
In any case, in most acquisitions and final prices the value added tax is already included.

According to country where one is the VAT may differ in its proportion and payment method.

Issues in Value Added Tax