What are value-added taxes when it comes to businesses?

[Good-Person]

Value-added taxes are some of the most common kind of taxes that are imposed by the government. However, when it comes to value-added taxes, the tax amount may be received by different relevant parties. So, what is value-added tax? Why is it used?

 

[Debashis]

Value-added tax (VAT) is a consumption tax imposed on the value added at each stage of production or distribution. It is used by governments to generate revenue and shift the tax burden from income to consumption.

 

[Kane]

Business adds value added taxes on the products they sell. Even though businesses are responsible for paying VAT< it is the consumers, who actually pay the taxes because they are the ones who purchase the product and pay VAT on every purchase they make. In our country, government has imposed 13 percent VAT on goods and services sold.