Acronym of VAT

( Value Added Tax ) Value Added Tax VAT, etc. (the name of this tax directly from German and English, adapted). Nowadays, in Europe, the tax "sales tax" ). Value Added Tax "Excise" is that the consumer (buyer) it along with the price of purchase), and the recipient (the seller) is bound to the amount of tax received to the state Treasury deposit. Because your dealer also, while the initial purchase of such tax paid, but the consumer is not the ... IS that he has the right to the whole "value added tax" payment of the "VAT" incoming deductions, and its difference to the state to pay.

famous examples of spin: the merchant or farmer a kg of wood tree to price 10 rial to the factory sells and 1 rial VAT business. Paper production has been lost, tens of manufacturers, and the merchant passes in the end to form a book, with a sale price of 50000 rials (with the tax lies 10% = 4545 rial) to the hands of the consumer reach. In this, the treasury of the state, maybe tens or hundreds of times the tax on Value Added Business and have the total sums of the difference values, the added incoming to the payer, namely, all the "value environment," that in conversion, stick to the book have been involved, including: Forest,, paper maker, shippers and transportation, company, Electric Company, Water Company, waste disposal, paint, paper maker, color print maker, color paper, ... color printing, sale, wholesaler, printing books, advertising companies, and single book sales return, because the tax on value added Real to just have the consumer end to pay the. This is, the tax is very heavy. Because of that, some discussion of it begins, which is better the taxation of trade between producers remove.

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