Vat

                                                                                                                                                                        A value added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs."value added" to a product by a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs. A VAT is like a sales tax in that ultimately only the end consumer is taxed.[citation needed] It differs from the sales tax in that, with the latter, the tax is collected and remitted to the government only once, at the point of purchase by the end consumer. With the VAT, collections, remittances to the government, and credits for taxes already paid occur each time a business in the supply chain purchases products.
What Does Value-Added Tax - VAT Mean?
A type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. Value-added tax (VAT) is most often used in the European Union. The amount of value-added tax that the user pays is the cost of the product, less any of the costs of materials used in the product that have already been taxed.
Investopedia explains Value-Added Tax - VAT:
For example when a television is built by a company in Europe the manufacturer is charged a value-added tax on all of the supplies they purchase for producing the television. Once the television reaches the shelf, the consumer who purchases it must pay the value-added tax that applies to him or her.
New Zealand:
The goods and services tax (GST) is a value added tax that was introduced in New Zealand in 1986, currently levied 15%. It is notable for exempting few items from the tax. Before the increase on 1 October 2010, GST was fixed at 12.5%.
Australia:
Goods and Services Tax (GST) is a Value Added Tax introduced in Australia in 2000, which is collected by seven State and Territory Governments. The revenue is then redistributed to the states and territories via the Commonwealth Grants Commission process. In essence, this is Australia's program of Horizontal Fiscal Equalisation. The Australian Constitution restricts the ability of individual States to collect excises or sales taxes. Whilst the rate is currently set at 10%, there are many domestically consumed items that are effectively zero-rated (GST-free) such as fresh food, education, and health services, as well as exemptions for Government charges and fees that are themselves in the nature of taxes.
Canada:
Goods and Services Tax (GST) is a Value Added Tax introduced by the Federal Government in 1991 at a rate of 7%, later reduced to the current rate of 5%. A Harmonized Sales Tax (combined GST and provincial sales tax) is collected in New Brunswick, Newfoundland (13%), Nova Scotia (15%), Ontario (13%) and British Columbia (12%). Advertised prices for goods generally do not include taxes; instead, tax is calculated at the cash register. Basic groceries, prescription drugs, inward/outbound transportation and medical devices are exempt.
United States:
The state of Michigan used a form of VAT known as the "Single Business Tax" (SBT) as its form of general business taxation. It is the only state in the United States to have used a VAT. When it was adopted in 1975, it replaced seven business taxes, including a corporate income tax. On August 9, 2006, the Michigan Legislature approved voter-initiated legislation to repeal the Single Business Tax, which was replaced by the Michigan Business Tax on January 1, 2008 The state of Hawaii has a 4% General Excise Tax (GET) that is charged on the gross income of any business entity generating income within the State of Hawaii. The State allows businesses to optionally pass on their tax burden by charging their customers a quasi sales tax rate of 4.166%. The total tax burden on each item sold is more than the 4.166% charged at the register since GET was charged earlier up the sales chain (such as manufacturers and wholesalers), making the GET less transparent than a retail sales tax.In October 2009, then-House Speaker Nancy Pelosi stated that a new, national VAT was "on the table" to help the federal government garner needed revenues. After her speech, the Americans for Tax Reform group urged the public to contact their members of Congress to oppose this potential measure. President Barack Obama was reported to be open to a national VAT. One day later, US Treasury Secretary Tim Geithner stated that President Obama does not support a VAT for the US.J. Samuelson has estimated that a VAT would need to be about 16% because, although an 8% VAT would theoretically suffice, there would be huge pressures to exempt groceries, rent and housing, health care, education, and charitable groups.
Tax rates EU countries:
Country↓     Standard rate↓     Reduced rate↓     Abbr.     Name
 Austria     20%     12% or 10%     MwSt./USt.     Mehrwertsteuer/Umsatzsteuer
 Belgium     21%    1200000012% or 6% or 0% in some cases     BTW
TVA
MWSt     Belasting over de toegevoegde waarde
Taxe sur la Valeur Ajoutée
Mehrwertsteuer
 Bulgaria     2000000020%    70000007% or 0%     ДДС     Данък добавена стойност
 Cyprus     1500000015% 50000005% (8% for taxi and bus transportation)     ΦΠΑ     Φόρος Προστιθέμενης Αξίας
 Czech Republic     2000000020%     1000000010%     DPH     Daň z přidané hodnoty
 Denmark     2500000025%     0%     moms     Meromsætningsafgift
 Estonia     2000000020%     &90000009%     km     käibemaks
 Finland     2300000023%     1300000013% or 9%     ALV
Moms     Arvonlisävero (Finnish)
Mervärdesskatt (Swedish)
 France     1960000019.6%    55000005.5% or 2.1%     TVA     Taxe sur la valeur ajoutée
 Germany     1900000019% (Helgoland 0%)     070000007% or 0% (Helgoland always 0%)     MwSt./USt.     Mehrwertsteuer/Umsatzsteuer
 Greece     2300000023%
(16% on Aegean islands)     1300000013% (6.5% for hotels and pharmacies)
(8% and 4% on Aegean islands)     ΦΠΑ     Φόρος Προστιθέμενης Αξίας
 Hungary     2500000025%     1800000018% or 5%     ÁFA     Általános forgalmi adó
 Ireland     2100000021%    1350000013.5% or 9.0% or 4.8% or 0%     CBL
VAT     Cáin Bhreisluacha (Irish)
Value Added Tax (English)
 Italy     2000000020%    1000000010% or 4%     IVA     Imposta sul Valore Aggiunto
 Latvia     2200000022%     1200000012% or 0%     PVN     Pievienotās vērtības nodoklis
 Lithuania     2100000021%     90000009% or 5%     PVM     Pridėtinės vertės mokestis
 Luxembourg     1500000015%     1200000012% or 9% or 6% or 3%     TVA     Taxe sur la Valeur Ajoutée
 Malta     1800000018%    50000005% or 0%     VAT     Taxxa tal-Valur Miżjud
 Netherlands     1900000019% 60000006% or 0%     BTW     Belasting over de toegevoegde waarde
 Poland     2300000023%    80000008% or 5% or 0%     PTU/VAT     Podatek od towarów i usług
 Portugal     2300000023%
15% in Madeira and Azores (Minimum 70% of mainland rate)    1300000013% or 6%
8% or 4% in Madeira and Azores (Minimum 70% of mainland rate)     IVA     Imposto sobre o Valor Acrescentado
 Romania     2400000024% 90000009% or 5% for first time buyers of new homes under special conditions     TVA     Taxa pe valoarea adăugată
 Slovakia     2000000020%     1000000010% or 6%     DPH     Daň z pridanej hodnoty
 Slovenia     2000000020%     85000008.5%     DDV     Davek na dodano vrednost
 Spain 1800000018%
5% in Canary Islands     80000008% or 4%
2% or 0% in Canary Islands     IVA
IGIC     Impuesto sobre el Valor Añadido
Impuesto General Indirecto Canario
 Sweden     2500000025%     1200000012% or 6%     Moms     Mervärdesskatt
 United Kingdom     2000000020%    50000005% or 0%     VAT     Value Added Tax
Non-EU countries
Country↓     Standard rate↓     Reduced rate↓     Local name
 Albania     20%     0%     TVSH = Tatimi mbi Vlerën e Shtuar
 Andorra     4.5%     1%     IVA = Impost sobre el Valor Afegit
 Azerbaijan     18%     10.5% or 0%     ƏDV = Əlavə dəyər vergisi
 Argentina     21%     10.5% or 0%     IVA = Impuesto al Valor Agregado
 Armenia     20%     0%     AAH = Avelac’vaç aržek’i hark
ԱԱՀ = Ավելացված արժեքի հարկ
 Australia     10%     0%     GST = Goods and Services Tax
 Belarus     20%         ПДВ = Падатак на дададзеную вартасьць
 Barbados     17.5%         VAT = Value Added Tax
 Bosnia and Herzegovina     17%     0%     PDV = Porez na dodanu vrijednost
 Brazil     12% + 25% + 5%     0%     *IPI - 12% = Imposto sobre produtos industrializados (Tax over industrialized products) - Federal Tax
ICMS - 25% = Imposto sobre circulação e serviços (Tax over commercialization and services) - State Tax
ISS - 5% = Imposto sobre serviço de qualquer natureza (Tax over any service) - City tax

*IPI = Imposto sobre produtos industrializados (Tax over industrialized products) can reach 60% over imported products.
 Bolivia     13%         IVA = Impuesto al Valor Agregado
 Canada     5% GST+0%-10%PST(HST)     5%/0%2     GST = Goods and Services Tax, TPS = Taxe sur les produits et services; HST1 = Harmonized Sales Tax, TVH = Taxe de vente harmonisée
 Chile     19%         IVA = Impuesto al Valor Agregado
 Colombia     16%         IVA = Impuesto al Valor Agregado
 People's Republic of China3     17%     13% for foods, printed matter, and households fuels; 6% or 3%     增值税 (pinyin:zēng zhí shuì)
 Croatia     23%     10% or 0%     PDV = Porez na dodanu vrijednost
 Dominican Republic     16%     12% or 0%     ITBIS = Impuesto sobre Transferencia de Bienes Industrializados y Servicios
 Ecuador     12%         IVA = Impuesto al Valor Agregado
 Egypt     10%         VAT = Value Added Tax (الضريبة على القيمة المضافة)
 El Salvador     13%         IVA = Impuesto al Valor Agregado o "Impuesto a la Transferencia de Bienes Muebles y a la Prestación de Servicios"
 Ethiopia     15%         VAT = Value Added Tax
 Fiji     15%     0%     VAT = Value Added Tax
 Georgia     18%     0%     DGhG = Damatebuli Ghirebulebis gdasakhadi დღგ = დამატებული ღირებულების გადასახადი
 Guatemala     12%         IVA = Impuesto al Valor Agregado
 Guyana    16%     0%     VAT = Value Added Tax
 Iran     3%         VAT = Value Added Tax (مالیات بر ارزش افزوده)
 Iceland     25.5%     7%4     VSK, VASK = Virðisaukaskattur
 India5     12.5%     5%, 1%, or 0%     VAT = Valued Added Tax
 Indonesia     10%     5%     PPN = Pajak Pertambahan Nilai
 Israel6     16%7(Eilat 0%)     0% (fruits and vegetables, tourism services, diamonds, flights and apartments renting)     Ma'am = מס ערך מוסף
 Japan     5%         Consumption tax = 消費税
 South Korea     10%         VAT = 부가세(附加稅, Bugase) = 부가가치세(附加價値稅, Bugagachise)
 Jersey8     5%     0%     GST = Goods and Services Tax
 Jordan     16%         GST = Goods and Sales Tax
 Kazakhstan     12%         ҚCҚ = Қосымша салық құны (Kazakh)
НДС = Налог на добавленную стоимость (Russian)
VAT = Value Added Tax
 Kosovo     16%         TVSH = Tatimi mbi Vlerën e Shtuar
 Lebanon     10%         TVA = Taxe sur la valeur ajoutée
 Liechtenstein    7.6%     3.6% (lodging services) or 2.4%     MWST = Mehrwertsteuer
 Morocco     20%         GST = Goods and Sales Tax (الضريبة على القيمة المضافة)
 Moldova     20%     8%, 5% or 0%     TVA = Taxa pe Valoarea Adăugată
 Macedonia     18%     5%     ДДВ = Данок на Додадена Вредност, DDV = Danok na Dodadena Vrednost
 Malaysia9     10%         GST = Goods and Services Tax (Government Tax)
 Mexico     16%     11%, 0%     IVA = Impuesto al Valor Agregado
 Montenegro     17%         PDV = Porez na dodatu vrijednost
 Mauritius     15%         VAT = Value Added Tax
 Nepal     13%     0%     VAT = Value Added Taxes
 New Zealand     15%         GST = Goods and Services Tax
 Norway     25%     14% or 8%     MVA = Merverdiavgift (bokmål) or meirverdiavgift (nynorsk) (informally moms)
 Palestinian territories     14.5%         VAT = Value Added Tax
 Pakistan     16%     1% or 0%     GST = General Sales Tax
 Panama     7%         ITBMS = Impuesto de Transferencia de Bienes Muebles y Servicios
 Paraguay     10%     5%     IVA= Impuesto al Valor Agregado
 Peru     16%+2%         IGV - 16% = Impuesto General a la Ventas IPM - 2% Impuesto de Promocion Municipal
 Philippines     12%10         RVAT = Reformed Value Added Tax, locally known as Karagdagang Buwis / Dungag nga Buhis
 Russia     18%     10% or 0%     НДС = Налог на добавленную стоимость, NDS = Nalog na dobavlennuyu stoimost’
 Saint Kitts and Nevis     17%         VAT = Value Added Tax
 Serbia     18%     8% or 0%     ПДВ = Порез на додату вредност, PDV = Porez na dodatu vrednost
 Singapore     7%         GST = Goods and Services Tax
 South Africa     14%     0%     VAT = Valued Added Tax
 Sri Lanka     12%     0%     VAT = Valued Added Tax has been in effect in Sri Lanka since 2001. On the 2001 budget, the rates have been revised to 12% and 0% from the previous 20%, 12% and 0%
 Switzerland     8%[35]     3.8% (hotel sector) and 2.5% (foods, books, newspapers, medical supplies)[35]     MWST = Mehrwertsteuer, TVA = Taxe sur la valeur ajoutée, IVA = Imposta sul valore aggiunto, TPV = Taglia sin la Plivalur
 Taiwan     5%        
 Thailand     7%         VAT = Value Added Tax, ภาษีมูลค่าเพิ่ม
 Trinidad and Tobago     15%     0%    
 Turkey     18%     8% or 1%     KDV = Katma değer vergisi
 Ukraine     20% (17% from January 2014)     0%     ПДВ = Податок на додану вартість, PDV = Podatok na dodanu vartist’.
 Uruguay     22%     10%     IVA = Impuesto al Valor Agregado
 Uzbekistan     20 %         НДС = Налог на добавленную стоимость
 Vietnam     10%     5% or 0%     GTGT = Giá Trị Gia Tăng
 Venezuela     12%     11%     IVA = Impuesto al Valor Agregado