VAT Definitions

The tax word VAT comes from latin, from the verb impono imponere, imposui, impositum which means put, impose, place, order.

The word value derives also from latin, comes from the noun, value, valoris, which in turn comes from the verb valeo, valere, valui, valitum whose concept is to be strong, to have force, effectiveness and by extension worth in the sense of having a certain value. This word comes from the Indo-European root * wal – which has the same concept as in latin.

VAT Definitions

And the added term also comes from the latin. It comes from the verb added aggregare, aggregavi, aggregatum, whose meaning is add, join, join, associate. This verb is formed by the suffix ad-/ a – meaning approach, address, presence, more the noun grex, gregis with the concept of herd. Thus they called so the beef which added to his flock.

In terms of its definition, it is a tax on consumption which is applied in many countries and that means tax on the value or the value added or value added tax.

VAT Definitions 1

VAT Meanings

Based on ABBREVIATIONFINDER.ORG, a tax is a compulsory charge that both individuals and companies give the State to contribute to revenue. It has the character of being an indirect tax that “are those who are charged on goods or transactions carried out with them […]” In the case of the tax value added “[…] they are loaded only net transactions between the companies, in a way such that the tax falls on the differential between the final sale price and the sum of the partial costs. In this way each company is forced to act, for their own convenience, as provisional retention, since it pays the taxes of the inputs used to then load them into the next phase of the production chain, which facilitates and cheapens the task of tax revenues; Another advantage of [the tax] is that it does not affect a so direct way to consumption […] “P. 180-181 Carlos Sabino. Dictionary of Economics and finance. Carlos Sabino. Edit. Panapo. Caracas.

VAT Definitions 2

It should be noted that intermediate sellers have the right to reimburse the VAT who have paid previous marketing vendors, because they deducted amount charged to their customers, and paying the balance to the Treasury. As all consumers must pay this tax without right to refund. This is controlled by the tax bodies in each country demanding companies supporting documents (invoices or tickets) delivery to the final consumer and also delivering copies of these to the accounts of the company.

Value added tax; tax on the value added, value added tax, defined on ABBREVIATIONFINDER.ORG.

VAT Definitions 3

“Walk through Iran, to buy some gifts their attention 3% VAT, which were considered very low with respect to other countries such as Argentina and Uruguay”. Refers in this case to the comparative value between countries of tax.

“In the marketing chain is a Distributor, therefore, pay the rate of VAT to the manufacturer and purchaser receives it business.” In this example, is used with the meaning of the exemplification of pay this tax among business buyers and sellers.

VAT Definitions 4

“They are very satisfied in the field of economy, already the increase that has occurred in the annual collection of VAT, they regard it as result of increased consumption and therefore an economic recovery in the country.” Here, applies to the economic effects that can be analyzed through this tax.

 

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