Definition
VAT (Value-Added Tax) is a consumption tax levied on the value added to goods and services at each stage of production, distribution, or sale. VAT is collected at each stage of the supply chain, with businesses acting as intermediaries for the tax authorities by charging, collecting, and remitting VAT on behalf of the government. VAT is typically calculated as a percentage of the sales price and is borne by the end consumer.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.