Sales tax and VAT terms for global finance teams
A comprehensive glossary of expert definitions and practical insights designed specifically for modern software and SaaS companies.
Whether you’re dealing with bundled transactions, trying to understand nexus thresholds, or managing cross-border digital service taxes, use this glossary to stay compliant and up to date while scaling globally.
Terms
Terms
Value-added tax (VAT)
Value-added tax represents a consumption tax applied at each stage of production and distribution. This system allows businesses to claim input tax credits while ensuring tax is collected on the value added at each stage. VAT systems operate in most European Union countries and many other nations worldwide, creating a comprehensive framework for taxing both goods and services.
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