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What is VAT Tax? | Understanding Value Added Tax | Federal Tax Authority
Explaining Vat

Value Added Tax is a tax on consumption levied at each stage of the supply chain and ultimately borne by the end consumer.

VAT is a transaction-based indirect tax which is levied at each step of the supply chain. End consumers generally bear the VAT cost while registered businesses collect and account for the tax, in a way acting as a tax collector on behalf of the Federal Tax Authority.

VAT is used in more than 180 countries around the world. All OECD countries except for the US have VAT (or a variation). While it feels exactly the same as a general sales tax to end-consumers, VAT is a more sophisticated tax and overcomes many challenges that affect the general sales tax.

Understanding your VAT related obligations

To find out more, explore each of the links below

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Have you registered for VAT?

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Page last updated on: 17 October 2021 - 04:18:32 PM

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