Know Your Vat

Tax is the means by which governments raise revenue to pay for public services. Government revenues from taxation are generally used to pay for things such public hospitals, schools and universities, defence and other important aspects of daily life. There are many different types of taxes: A direct tax is collected by government from the person on whom it is imposed (e.g., income tax, corporate tax). An indirect tax is collected for government by an intermediary (e.g. a retail store) from the person that ultimately pays the tax (e.g., VAT, Sales Tax).