Under the EU VAT framework as implemented nationally, VAT is a consumption tax applied to many goods and services. Businesses account for it under the applicable rules; rates and treatment depend on the product, location and transaction.[1]
Separate collected VAT from revenue and profit. A consumer payment is not entirely the merchant's revenue when it includes VAT owed. Establish the tax treatment before comparing prices or margins.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.