VAT (Value Added Tax)
An indirect tax applied to supplies of goods and services. Whether the store shows prices inclusive or exclusive of tax depends on a setting; the tax line also appears separately in the cart summary and the final amount you will pay is calculated with that line included.
There are two approaches to price display. In tax-inclusive display the product price is already the final amount; in tax-exclusive display a separate tax line appears in the cart summary and the total is formed together with that line. Which approach is used is clearly visible on the cart screen.
- Showing the total price including all taxes is mandatory in the pre-contractual information form and in the contract.
- The tax rate may vary by product group; the rate applied is also written on the invoice.
- In corporate purchases the tax amount may be deductible depending on your taxpayer status.
When making comparisons, fix the tax basis: putting a tax-exclusive amount next to a tax-inclusive one gives a misleading result. The total you see in the cart and the total on the invoice must match; if they do not, a shipping charge or an extra service item may be involved. Check the breakdown of the final amount from the cart summary before payment.
The context in which this term is used: contact page