Optillion

Description

VAT means value added tax. It is a tax that is assessed at each "phase" of a product. When the manufacturer purchases the raw materials, the supplier charges the manufacturer VAT based on the sales price of the raw materials. When the manufacturer constructs the product from the raw materials and sells the product to the wholesaler, the manufacturer charges the wholesaler VAT based on the manufacturer's price of the product. When the wholesaler sells the product to a retailer, VAT is charged by the wholesaler based on the wholesale price of the product. When the retailer sells the product to the consumer, the retailer charges VAT based on the final selling price of the product.

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