Business and staff
VAT
Abbreviation for value added tax
In short and in plain language
VAT is the tax on the sale of goods and services.
In Germany it is called Mehrwertsteuer or Umsatzsteuer.
If a price says net plus tax, the tax is added on top.
Whether it applies and at what rate depends on the tax situation of the deal.
Definition
VAT is the tax charged on the sale of goods and services, called Mehrwertsteuer or Umsatzsteuer in Germany. A price stated as net plus VAT means the tax is added on top. Whether and at what rate it applies depends on the tax situation of the transaction.