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Grade -10 (SEE) Math Profit and Loss

What is Value added tax (VAT) ?

Write down the definition of value added tax (VAT) ?

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Tribhuvan University > Institute of Science and Technology > B.Sc. (CSIT)

A value added tax commonly known as VAT is a kind of consumption tax that is placed on the purchase of goods, services, sales, tariffs and so on on the supply chain from manufacture to whole sale to retail of the product or service. Almost every country in the world apply value added tax as a part of consumption tax. Since value added tax is applied only on selling price. the formula for VAT is

VAT Amount = VAT % of Selling Price

The VAT rate in Nepal is 13% but some goods are exempted (free) from VAT.

The VAT rate in India is 12.36%, whereas in USA VAT rate is 10.00% and in united kingdom it is 20%

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