This Article focuses u on some of the basics instruction to VAT http://www.onlyaboutfinance.com/2012/12/24/vat-value-added-tax/

1. VAT and all related Question Answers
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2. Value added tax- have you understood
the term.
Mostly we know the value added tax as VAT. It is almost
like consumers tax collected by the VAT-registered
traders on their distribution of goods and services to
their customers. You can simply understand VAT as a
value added to the products and services, and basically
a price difference between the amount paid by the
customer and the price of the product.
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3. How much does one has to pay VAT
According to the rules applied after 4th January
2011 onwards, the standard rare for VAT is 20%,
while the reduced rate is 5% and zero rate equals
to 0%. Moreover, until it is specified mostly items
are categorized under the standard rate.
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4. The processing of VAT tax
VAT is charged on sales made between the seller
and buyer. You simply VAT to the existing price of
the product.
It is charged by multiplying the cost of product to
the VAT rate percentage and then finally adding in
the invoices.
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5. How to pay VAT tax
At first you have to keep all the records of sales
and purchase that you make.
The VAT you are charging on any business
activities or customers. When the customers buy
services and goods from you, it is considered as
the output tax.
The VAT that you pay while buying the goods and
services are known as the input tax.
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