VAT


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A value-added tax (VAT) or general sales tax (GST) is a form of consumption tax. From the perspective of the customer, it is a tax added onto the purchase price. From the perspective of the seller, it is a tax on only the value added to a product, material or service, from an accounting viewpoint, at this stage of its manufacture or distribution. The manufacturer pays the government the difference between these two amounts and retains the rest for themselves to balance out the taxes previously paid on the inputs.

The quality of the people and the advice is superb. It is a real breath of fresh air to be told...
Steve Darnell
Managing Director
IRUN Ltd
Oxford
27/02/2015

The value added to a product by or with a business is the sale price, minus the cost of manufacture such as materials and other taxable inputs. VAT is effectively a sales tax as only the end customer is taxed. It differs from actual sales tax however due to the sales tax being collected and remitted to the government only once, at the point of purchase by the end customer. With VAT, on the other hand, collections, remittances to the government, and credits for taxes that are already paid occur every time a business in the supply chain purchases the products.

Throughout our 35 year relationship the service has remained consistently excellent.

Andrew
Garner
Managing Director
Andrew Garner Associates
London
15/05/2017
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