07/05/2024
**WHAT IS VAT **
VAT is a tax added to a product at each stage of its production. The tax is added incrementally as value is added to the product. Ultimately, the final retail consumer is responsible for paying the tax. For instance, if a product costs $10 and there's a VAT of 20%, the consumer will pay a final price of $12.
This means that the price of a product increases as it goes through each production stage. However, the final amount paid by the consumer is the total of all the incremental amounts of the tax added to the product. This is important to remember when calculating a product's final cost.
