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VLogistics Term

Value-Added Tax (VAT)

A consumption tax imposed on goods and services at each stage of production and distribution.

Definition

A consumption tax imposed on goods and services at each stage of production and distribution. In international trade VAT is often charged on imported goods before they can be cleared for domestic sale. The VAT rate varies by country and businesses may be eligible for refunds if the goods are subsequently exported or re-sold. Understanding VAT regulations is crucial for importers to ensure compliance and avoid unexpected tax liabilities

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