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INTRODUCTION
A Value Added Tax is a type of consumption tax levied on products at every point of sale where value has been added to the product. It starts from the raw material stage to the point of sale where it is bought by the final consumer.
Consumption tax is simply defined as a tax levied on the purchase of goods and services. Every seller in the production chain charges a VAT to the buyer, which is then remitted to the government. The amount of VAT levied at each point of sale along the production chain is based on the value added by the seller.
INTRODUCTION
A Value Added Tax is a type of consumption tax levied on products at every point of sale where value has been added to the product. It starts from the raw material stage to the point of sale where it is bought by the final consumer.
Consumption tax is simply defined as a tax levied on the purchase of goods and services. Every seller in the production chain charges a VAT to the buyer, which is then remitted to the government. The amount of VAT levied at each point of sale along the production chain is based on the value added by the seller.