VAT, value added tax or value added tax, is an indirect tax levied on the consumption of products and services.
It does not depend on the taxpayer's income, but is a percentage applied to different goods and services.
It is an indirect tax, which means that it is not collected by the Treasury directly from the consumer. Sellers or service providers (companies) are the intermediaries through which the tax is collected by the Treasury.
The companies settle the VAT with the tax authorities, declare the VAT charged to their customers, and subtract the input VAT paid on their purchases. If the result is positive, they will pay it, and if it is negative, it is compensated in the following liquidations.
In the following link you can see a VAT comparison by country.