Value Added Tax (VAT), is a transaction-based tax charged on the supply of goods and services by businesses where they are making a supply for consideration, with the tax ultimately paid by the final consumer in the supply chain. VAT collected at each stage of the supply chain is remitted/ reported by the VAT payer to the tax authorities.
There are currently more than 160 jurisdictions around the world that maintain and enforce a VAT system, with average tax rates exceeding 20%. Many U.S. and Canadian companies that do business outside North America are unaware of the application of VAT to their transactions and how to best manage compliance and mitigate the risks within their supply chains.
DMA’s state-specific tax professionals work with you as an extension of your tax department.