Value added tax or VAT for short is a tax that businesses must pay to the government when they sell a product or service. It is not the same percentage in all countries.
Nordic countries are the ones with the highest VAT. Denmark for example has 25% as it's standard rate. Finland has 23% standard VAT, Iceland has 25.5% VAT and Norway and Sweden both have 25% standard VAT.
UK and most countries in the European Union have a standard VAT of 20%. This does not go for all countries and all products. Sometimes VAT can be 5%, which is called reduced VAT or even 0% when there is no VAT.
The United States of America do not have VAT. Instead they have a tax called sales tax.
For more information on VAT, check out What is VAT? and How VAT works,
Nordic countries are the ones with the highest VAT. Denmark for example has 25% as it's standard rate. Finland has 23% standard VAT, Iceland has 25.5% VAT and Norway and Sweden both have 25% standard VAT.
UK and most countries in the European Union have a standard VAT of 20%. This does not go for all countries and all products. Sometimes VAT can be 5%, which is called reduced VAT or even 0% when there is no VAT.
The United States of America do not have VAT. Instead they have a tax called sales tax.
For more information on VAT, check out What is VAT? and How VAT works,
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