Value Added Tax (VAT):
VAT (moms) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. It is a common form of tax in many countries.
It is calculated as a percentage of the sale price of goods and services. When a business sells a product or a service, it collects VAT on behalf of the government and pays this tax to the state.
In European Union countries, VAT rates are often harmonized, but they can vary from country to country. VAT is charged every time a product or service is sold or consumed.
VAT affects both domestic and imported goods, as it is applied to all products sold to consumers.
Import Duties:
Import duties are taxes and fees imposed on goods that are brought into a country. This includes tariffs, customs duties, and other charges.
The purpose of import duties can be to protect domestic industries from foreign competition, generate revenue for the government, and/or regulate the trade of specific goods.
Import duties are specific to each country and often depend on the type of goods, the country of origin, and the value of the goods.
These charges are typically imposed at the country's borders when the goods are imported and must be paid by the importer or the buyer.
In summary, the main difference is that VAT is a general consumption tax on goods and services within a country, while import duties are specifically imposed on goods imported from other countries. Import duties can vary significantly depending on the policies of the country and the specific goods being imported.
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