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What is VAT based on?

The amount of VAT the user pays is based on the cost of the product minus any costs of materials that were taxed at a previous stage. Value-added tax rates vary. Not all countries impose a VAT on goods and services, including the United States. Value-added tax is added to a product at every point of the supply chain where value is added to it.

What is Value-Added Tax (VAT)?

Value-added tax (VAT) is a tax on products or services. Consumers pay the VAT, which is typically a percentage of the sale price. The U.S. does not have a VAT.

What is Value-Added Tax?

Value-added tax is typically a percentage of the sale price. For example, if you purchase a pair of shoes for $100, and the VAT rate is 20%, you would pay $20 in tax at the register when you pay for the shoes. Value-added tax rates vary by country, and some countries exclude certain goods or services from the tax altogether.

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