VALUE ADDED TAX AND ITS CHARACTERISTICS

Abstract

Value Added Tax (VAT) is one of the most important indirect taxes in a modern market economy, which is levied on the added value of products and services at the consumption stage. This article provides a comprehensive analysis of the role of VAT in the economy, its importance in fiscal policy, and its impact on the state budget. It also discusses the mechanisms for calculating and collecting VAT, its impact on taxpayers, and the benefits created for business entities and their economic results.