VAT is the acronym for the term "Value Added Tax" or "value added tax", this is a tax that is granted to a certain State, after acquiring or buying the products; due to the different goods and services that the law exempts from paying in some or each of the commercializations. In other words, it is a tax on consumption, which is paid for the value that we give to the products or services that we have acquired. The dictionary of the real Spanish academy exposes the abbreviation VAT as that tax on consumption that records trade agreements, imports, services among many others.
This tax burden on consumerism is adapted in several countries and generalized in the European Union. VAT is an indirect tax on consumption, that is, it is financed by the end customer; A direct tax can be defined as that tax that is not collected by the treasury directly from the taxpayer or dependent. VAT is collected by the merchant at the moment of the commercial transaction, that is, when the goods and services are exchanged .
Each intermediary seller has the right to reimburse the Value Added Tax that they have paid to other sellers who follow them in the commercialization succession, deducting it from the amount of VAT collected from their customers, having to pay the amount to the treasury. The last consumers are those who are forced to pay VAT without the right to reimbursement, and it is the treasury in charge of controlling it, forcing the organization or company to provide the proof of sale to the final consumer and add copies of these to the accounting in a company.
