Value Added Tax
Tax is a fee charged by the government on consumer goods, services, business revenues and other financial transactions to provide funding for public services and other government expenses incurred. There are two types of government taxes: direct and indirect tax.
Direct tax – it is paid by the taxpayer directly to the government without any intermediary.
Indirect tax – paid by the taxpayer to an intermediary who acts on behalf of the government for tax collection.
The VAT is a Value-added Tax also in some countries referred to as Goods and Services Tax (GST.) It is an indirect type of tax which is imposed on each step of supply of goods and services. VAT-Registered businesses get a refund on the tax paid from the previous step at the current step of the sales process. Ultimately, the end customers are the ones who will pay the VAT, the rate of which is added to the price of products and services they purchase.
VAT Registration Process
VAT Registration is a process that includes collecting and filing the documents to the responsible tax authorities so that your company listed as VAT-Registered. The registration rules and processes can be different from government to government.
The UAE VAT registration process is discussed here.
For KSA, US and UK registration processes click the links below: