Value Added Tax
Resellers or producers of goods or providers of services (collectively, providers) must collect value added tax (VAT) in some jurisdictions upon billing or being paid by customers. Where these providers use goods or services provided by others, they may have paid VAT to other providers. Most VAT systems allow the amount of such VAT paid or considered paid to be used to offset VAT payments due, generally referred to as an input credit. Some systems allow the excess of input credits over VAT obligations to be refunded after a period of time.
Read more about this topic: Tax Credit
Famous quotes containing the words added and/or tax:
“Let the trumpet of the day of judgment sound when it will, I shall appear with this book in my hand before the Sovereign Judge, and cry with a loud voice, This is my work, there were my thoughts, and thus was I. I have freely told both the good and the bad, have hid nothing wicked, added nothing good.”
—Jean-Jacques Rousseau (1712–1778)
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—Alexis de Tocqueville (1805–1859)