Output VAT

    VAT charged on sales to customers.

    Definition

    Output VAT is the tax a business collects from its customers when selling goods or services. The business must remit this collected tax to the tax authority, minus any deductible input VAT. Output VAT rates depend on the country and the type of goods or services sold.

    Related Terms

    VAT (Value Added Tax)
    A consumption tax levied at each stage of the supply chain.
    Input VAT
    VAT paid on purchases used for business activities.
    VAT Return
    A periodic declaration of VAT collected and paid.

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