Taxes: Are You Ready for VAT?

In Europe, many governments boost their revenue through the value-added tax (VAT). It is also used Australia and Latin America. The VAT is a tax that works by collecting revenues at every stage of product production. So, taxes would be charged to manufacturers when they buy materials, and on down the line as the product is sold and resold. It’s basically sales tax, but it’s collected at stages previous to reaching the end-user. Many economists consider the most efficient way for a government to raise revenue. For consumers here in the U.S., it would likely result in higher prices for …read more