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:
“The world was not created once and for all time for each of us individually. There are added to it in the course of our life things of which we have never had any suspicion.”
—Marcel Proust (1871–1922)
“If you tax too high, the revenue will yield nothing.”
—Ralph Waldo Emerson (1803–1882)