What Is Value Added Tax (VAT)?

VAT, or Value Added Tax, is a form of taxation applying to all products in an economy. The tax is applied whenever any value is added to a product, hence the name. An example of VAT is:

  • A technology company buys components for a stereo from suppliers, paying VAT on each component.
  • The consumer buying the stereo as a finished product pays VAT on it.

To learn more about this concept and become a master at Financial Statement modeling, you should check out our FSM Modeling Course. Learn more here. 

Module 1: Getting Started

Module 2: Fundamental Concepts

Module 3: The Income Statement

Module 4: Working Capital

Module 5: PP&E and Intangibles

Module 6: The Cash Flow Statement

Module 7: Debt & Interest Schedule

Module 8: Finishing Your Model

Module 9: Bonus

Learn More Here

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