Business, tax and funding
VAT
Abbreviation for value added tax
In short and in plain language
VAT stands for value added tax.
It is the tax on the sale of goods and services.
Prices and bills often show it in a note. It may say that the tax is added on top.
Whether it applies and how high it is depends on the case. One example is the rule for small firms.
Definition
VAT stands for value added tax, the tax charged on the sale of goods and services. In prices and on invoices it often appears as a note such as plus VAT. Whether and at what rate it applies depends on the individual case, for example on the small business scheme.