VAT or Value Added Tax is a tax that most of us pay on a regular basis, but only a few actually understand. According to Villanova University and its Master of Science in Analytics online program, VAT is added to exchanges, making it applicable to goods. In recent years, VAT has also been added to apps and software along with goods that weren’t available when the regulation was first put in place.
VAT is levied on every subsequent exchange, according to the same study. It is also worth noting that VAT is among the most commonly used taxes in the world, with over 140 countries using VAT to tax exchanges. The United States, however, is not among those countries. While sales tax is common in the US, the country doesn’t use VAT.
To learn more about VAT as well as other taxes in different parts of the world, you can read the complete Global Taxes infographic by taxandbusinessonline.villanova.edu.