- U.S. companies need a clear understanding of VATs and tariffs for global business.
- VATs and tariffs are often confused but have different purposes and effects.
- VAT is a multi-stage tax on value added, ultimately paid by consumers.
- Tariffs tax imported goods to regulate trade and protect domestic products.
- VATs are common globally, with over 175 countries using them.
- VATs are neutral and not specifically targeting U.S. exporters.
- Misunderstandings can lead to trade distortions and calculation errors.
Source: cfo.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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