What is VAT – value added tax?

A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. If the ultimate consumer is a business that collects and pays to the government VAT on its products or services, it can reclaim the tax paid. It is similar to and is often compared with, a sales tax. Importers who import into countries that have applicable VAT taxes in place will be required to pay VAT tax on the items they import at the time of import. VAT tax on the imported item is not included in your Exfreight shipping quote. VAT tax can also be applicable on the freight charges in some countries on certain types of freight movements. IF VAT tax is applicable on the freight charges for your move we will include that on the freight quote but this should not be confused with the VAT tax applicable on the value of any imported commodity when it’s applicable.