Reclaiming VAT Payments

For many countries, the primary method of revenue collection is the value added tax, or VAT. VAT, which is a tax levied on goods and services at each stage of production, can range from 3.6 percent to 25 percent of the final cost of goods produced or sold in those countries. Although the burden of paying VAT ultimately falls on the end-consumer, retailers, manufacturers and other businesses are responsible for making sure the tax is paid when the products are received in their inventories. It…