fiestaturbo.com

[analankie]

Can someone explain to me what value added tax is? so i was issued a receipt, i payed a total of 225.5 pesos, the cashier issued me a receipt, she computed for the VAT which came out to 24.16 pesos. what is that 24.16 pesos? does that amount go the government?
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[RSGeorge]

pretty much yes. Value added tax in the UK is 20% of some goods.

Take a commercial vehicle for example. Van advertised for £10,000 + VAT would mean that the cost to the buyer is £12,000. Alot of things have VAT included in the price, another example when you do your grocery shopping and it totals to £100, the VAT is not seperated at the checkout, the price shown will already include the VAT

Hope this helps

[andymac]

To confuse things in the UK, not everything has VAT applied and VAT isn't 20% on everything ! For example, an individual will pay 5% VAT on energy and domestic fuel (gas, electricity etc) but a company would pay 20% - however the company has a mechanism for claiming VAT back, so the company can end up slightly better off.

Essentially though, all that tax ends up with the government.