Value Added Tax (VAT) is a type of indirect tax that is imposed on the consumption of goods and services. It is applied at each stage of the supply chain, from production to the final sale. The tax is collected by businesses on behalf of the government and is usually added to the price of goods and services. While businesses pay VAT on their purchases (input VAT), they also collect VAT on their sales (output VAT). The difference between the two is paid to the government