Knowledge Base
    Tax & Compliance

    VAT (Value Added Tax)

    A consumption tax added at each stage of production or distribution, ultimately paid by the end consumer.

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    VAT is used in over 160 countries including the UK, EU, Nigeria, and Australia (as GST). VAT-registered businesses collect VAT on sales and can reclaim VAT paid on business purchases. Rates and thresholds vary by country.

    Related Terms

    GST (Goods and Services Tax)Tax Invoice

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    HMRC Invoicing Rules: UK Making Tax Digital Compliance Guide

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