What is VAT?
A value-added tax applies the equivalent of a sales tax to every operation that creates value.
The VAT is usually administered by requiring the company to complete a VAT return indicating the VAT it has collected (as input tax) and the VAT it has collected from others (hereinafter referred to as "output tax"). The difference between the output tax and the input tax must be paid by the local tax authority.
Many tax authorities have introduced automated VAT, which has increased accountability and audibility through computer systems, thus also providing cybercrime offices.
