VAT

Meaning

Value-added tax (VAT) is a type of consumption tax that’s added to sales in most of the world, usually expressed as a percentage.

Key points

• VAT appears frequently in invoicing, payment handling, and bookkeeping workflows.
• The term improves clarity between clients, suppliers, and accounting teams.
• Consistent use supports cleaner documentation and better reporting quality.

Practical use

In Nexbal workflows, vat is used to keep invoice and payment operations structured and auditable.