Legal guide Statistics Dr. Ecommerce I am doing research on VAT and e-commerce for an international tax law class. I appreciate any help.
VAT is in fact quite simple in principle.
It is a tax, on virtually all goods and services, that is applied at both the wholesale and retail stages. Imagine you own a factory. However, this is clearly too much VAT being paid. If you collect more tax than you receive, you must pay the excess tax to the tax office. If you collect less tax than you receive, then you can get compensated for the excess you have paid.