Value added tax (VAT)
Why it is important to have value added tax functionality:
VAT is the predominant form of tax used around the world. It is key for companies who need to comply with VAT tax to be able to display their tax added on their goods through their point of sale systems. Having this function within RetailEdge allows for easy calculation and clear identification of tax added to goods.
What is value added tax?
VAT represents a tax on value added to product throughout the production process. This means that the value of an article has been increased at each stage of its production or distribution from raw materials to the final sale based on value price at each stage.
How does value added tax work?
VAT is a highly efficient flat consumption tax that reduces the incidence of non-compliance because tax is assessed at more than one point. VAT is like sales tax in that ultimately only the end consumer is taxed, but the tax is collected and remitted to the government only once at the point of purchase by the end consumer.
How VAT works in RetailEdge:
To calculate VAT in RetailEdge use the built in price calculator that automatically calculates the price required to make the VAT inclusive price equal to the entered value. RetailEdge will automatically print receipts and labels with the VAT included price.