During production and distribution process, a product goes to various sections & in different hands for reaching consumer’s bucket. VAT is a goods & service tax which gets added into a product on the supply chain wherever value is being attached to it. It is an indirect tax which usually applies on the supply of commodities & services that are bought and sold. Around the globe, it is one of the most noticeable types of consumption tax.

VAT is imposed at every step of ‘Supply Chain’. Final consumers generally bear its cost while businesses collect and account for the tax, in a way acting as government’s collector.

Sales tax is the specific amount which is collected by the retailer at the time of final sale in the supply chain. End consumers pay sales tax when the buy commodities or services.

Whereas, VAT is the tax that is collected by the sellers at every step of the supply chain. Suppliers, manufacturers, distributors, and retailers all collect tax on taxable sales.

Honestly telling, qualified & skilled consultants will identify more refund opportunities than you. If you are performing the review with your in-house employees of familiarity, the chances of more errors are less success are high. Even the net of the consultant’s fee is less than the larger refund which you’ll receive by the end of the review.

Tax records should be kept as long as needed to prove the income or deductions on a tax return. In easier words, they need to be maintained for 3 years from the date the return was filed or from the due date of tax return.