Business, tax and funding
VAT
Abbreviation for value added tax
In short and in plain language
VAT is short for value added tax.
It is a tax on goods and services. Businesses charge it to their customers. Then they pass the money on to the tax office.
On websites it often shows up next to prices. For example, a price is shown as net, plus this tax.
Definition
Value added tax is a tax on goods and services that businesses charge their customers and pass on to the tax office. On websites it often appears next to prices, for example as net plus VAT.