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v t stands for Value Added Tax, which is a consumption tax placed on a product whenever value is added at each stage of the supply chain.
Businesses that meet the threshold for VAT registration in a particular country are required to file VAT.
To fill out VAT, businesses need to report the value added at each stage of production or distribution.
The purpose of VAT is to generate revenue for the government and to shift the tax burden from income to consumption.
Businesses need to report the amount of VAT charged and paid, as well as the taxable supplies made.
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