European Union Value Added Tax (EU VAT)

European Union Value Added Tax (EU VAT) is a consumption tax applied to goods and services sold within the EU. It is charged at each stage of production and distribution, with businesses collecting tax on sales and paying tax on their purchases. The difference is submitted to the government. VAT rates differ by member country but generally apply to most products and services. The system aims to create a level playing field across the EU, ensuring that businesses contribute to public finances while avoiding double taxation and allowing for seamless trade between nations.