What you need to understand about Value added Tax.

[Mataracy]

What people, business man/woman and some civil servant need to understand about value added tax because after this might have been removed from the basic pay some people do not under stand the reason why it being raaemoved.

Value Added Tax is a consumption tax that has been embraced by many countries worldwide.
Because it is a consumption tax,it is relatively easy to administer and difficult to evade. That is; before your money enter your bank account or hand the money would have been removed.

The yield from VAT is a fairly accurate measurement of the growth of an economy since purchasing power(which determines yield) increase with the growth. Vat is a self assessment tax that is paid when returns are being rendered.

 

[Kabak95]

VAT's are hugely regressive, with the cost falling mostly on the poor.

 

[marcusfe]

Value Added Tax is what nobody can evade. Whether you like or not it's compulsory levey that must b paid into the government internationally generated revenue account. Why it has become absolutely impossible for anyone to escape this tax is because they are not being directly from the citizens. In as much as your carrying out transactions that involves buying some commodities then you're already paying VAT.

 

[Deleted member 27126]

What people, business man/woman and some civil servant need to understand about value added tax because after this might have been removed from the basic pay some people do not under stand the reason why it being raaemoved.

Value Added Tax is a consumption tax that has been embraced by many countries worldwide.
Because it is a consumption tax,it is relatively easy to administer and difficult to evade. That is; before your money enter your bank account or hand the money would have been removed.

The yield from VAT is a fairly accurate measurement of the growth of an economy since purchasing power(which determines yield) increase with the growth. Vat is a self assessment tax that is paid when returns are being rendered.

From my little explanation of Value Added Tax as a financial accounting graduate, it is a kind of tax levied on finished goods. It reflects the values that have been added to goods from the primary stage when they were first extracted tl the final stage where production was completely performed. So, the value added tax is charged to compensate the seller or producers for their efforts.

 

[Emmatyking]

To my little knowledge, Value added Tax is commonly expressed as a percentage of the total cost. For example, if a product cost ₦100 and there is a 15% VAT, the consumer pays ₦115 to the merchant. The merchant keeps ₦100 and remits ₦15 to the government