FOLIO Ontology

Value Added Tax (VAT) Payment encompasses all general consumption taxes charged on the value added to goods and services, irrespective of the method of deduction and the stages at which the taxes are levied. Typically, VAT allows for the immediate deduction of taxes on purchases by all entities except the final consumer and is imposed at all stages of production and distribution. In some countries, this category may include taxes on financial and insurance activities due to the difficulty in separating these receipts from general VAT collections or because they are considered integral to the VAT system.