Define VAT, what is excise?, Taxation

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Define VAT? what is excise? VAT refers for value added tax, that is termed as charged on profit earned by firm, for example example: let suppose a business man sells a product of USD 100 to USD 110, i.e. the vat is on that USD 10.if the tax rate is 5% then the tax value will be USD .0.50.

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