VAT in UK
What is a Value Added Tax? A value added tax (VAT) is a type of purchasing tax. From the viewpoint of the purchaser, it is a tax on the products or services purchased. On the other hand, for seller’s it is a tax put on the product because of its value, information or service, from an accounting view; by his portion of its production or delivery. The producer gives to the state the difference taken between these two values, and keeps hold of the remaining to himself, to equalize the tax he already paid on the products. The customers are charged by computing the “value added” to a product minus the material costing and other taxable inputs.
A VAT is similar to that of the more...