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Value added tax Information

A Value added tax is a broad based consumption tax levied on value added to goods and services along each step in the production or delivery of the good or service. It is the consumer of the good or service that ultimately pays the tax and should not be confused with a tax on a business (such as income tax). In most cases, the tax is passed through the business to the end user and the business plays the role of tax collector for the Government of the country in which it resides.

As basically a tax collection agent, it is important that businesses understand their obligations in respect of the registration and compliance issues that will be mandatory and for which heavy fines could exist for non-compliance.