VAT Full Form | What is the Full Form of VAT
VAT Full Form - Value Added Tax
- VAT stands for Value Added Tax. It’s a standard type of indirect tax which is imposed only on tangible goods or products.
- It’s imposed at each stage of production involved in turning raw material into finished goods and at the point of sale.
- A VAT (VAT) is the consumption tax placed on a product whenever value is added at each stage of the availability chain, from production to the purpose of sale.
- The number of VAT that the user pays is on the value of the product, less any of the costs of materials used in the product that have already been taxed.
Value Added Tax
- VAT isn't applicable on services as service tax is imposed separately on services. It’s collected by the Central and State governments.
- Its chargeability varies from state to state. VAT is implemented in the most countries in the world as it contributes significantly to the GDP of the country.