Value Added Tax (VAT)

VAT is a consumption tax charged on the value added at each stage of the supply chain.

VAT is applied to taxable supplies, collected from customers (output VAT), and recoverable on eligible purchases (input VAT), with the net payable/remittable to the tax authority.

- Used when computing taxes, preparing returns, and documenting tax positions.
- Used to evaluate transaction tax impact and ensure compliance (VAT/GST/Corporate Tax).

- Example: The tax team applies **Value Added Tax (VAT)** to determine the correct tax treatment and to support the filing.

- Why it matters: Reduces compliance risk, helps avoid penalties, and supports consistent tax reporting and defensible positions.