VAT/GST

VAT (Value-Added Tax) or GST (Goods and Services Tax) is a consumption tax applied incrementally at each stage of the supply chain. Businesses charge this tax on their sales, and can reclaim the tax paid on their purchases, so ultimately the end consumer bears the full cost. It ensures government revenue from goods and services without taxing income directly. The rate varies by country, and the system helps to reduce tax evasion and maintain transparency in transactions. In essence, VAT/GST collects tax gradually as products or services move from production to final sale.