Value Added Tax

VAT stands for value added tax and is an end-consumer sales tax paid on almost all goods and services in Europe and other countries, too. It is, generally, a deductible or refundable tax.

Value Added Tax (also referred to as input tax or turnover tax), an indirect tax levied at every economic stage from the manufacturer to the end consumer. Value Added Tax is also recognized in different countries as IVA, GST, MwST, TVA, MOMS. As a qualifying claimant of eligible refunds, your business may be able to seek reimbursement of this tax paid on a broad range of business related expenses abroad.

The legal provisions pertaining to VAT refunds tend to be highly complicated and vary largely from country to country. Over the past ten years, legislative changes in the national tax systems of EU, Europe, Canada, Japan and South Korea allow the most non-resident business entities worldwide to refund VAT. However, there still are certain restrictions, such as applicable reciprocity or in some instances, registration for VAT is legally required in order to get the refund.

In general, the answer to the question "What is VAT?" is simple – it’s a part, in some instances even a quarter, of price you pay – It's YOUR money.