What is VAT and How Does it Work?

Techpeniel06 Apr, 2021Finance

What is VAT: Value-added tax widely known as VAT is an indirect tax that is charged on the supply of goods and services. It has been executed in more than 160 nations and on April 1st, 2021 Oman will join the association of countries that have executed VAT. The VAT being a new system, businesses need to know the concept of VAT and how the structure works. Understanding VAT VAT is a universal consumption tax that is imposed on dutiable goods and services that are accepted and sold in Oman together with the import of goods and services. It is charged and collected at each phase of the supply chain right from the producer?s purchase of raw materials to a vendor?s sale of an end-product to a customer. As it is an indirect tax system, the listed businesses act as mediators to charge, accumulate and remit the tax to the authorities.