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:
“A few hours’ mountain climbing turns a rogue and a saint into two roughly equal creatures. Weariness is the shortest path to equality and fraternity—and liberty is finally added by sleep.”
—Friedrich Nietzsche (1844–1900)
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