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European VAT Calculation Services methodology On this page 1. Purpose 2. Scope 3. Overview 4. Seller VAT calculation eligibility criteria 5. VAT registration numbers 6. Determining the VAT jurisdiction
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Value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.
Businesses that are registered for VAT are required to file value-added tax returns.
Value-added tax returns can be filled out manually or electronically using the prescribed forms provided by the tax authority.
The purpose of value-added tax is to generate revenue for the government while taxing consumption rather than income.
Information such as total sales, purchases, output tax (tax collected), and input tax (tax paid) must be reported on value-added tax returns.
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