VAT/GST Law

VAT (Value Added Tax) and GST (Goods and Services Tax) are sales taxes imposed on the value added at each stage of the production and distribution process. Consumers ultimately pay this tax when they purchase goods or services. Businesses collect VAT/GST on behalf of the government and can reclaim the tax they pay on their purchases (input tax). This system ensures that tax is levied incrementally on the value added at each stage, promoting transparency and efficiency. The rates and rules can vary by country but serve the common purpose of generating revenue for public services.