This infographic illustrates how Value Added Tax (VAT) works. The top of the image features an example of a transaction between a business and a customer. The visual representation breaks down the VAT calculation into three parts: output VAT, input VAT, and net VAT. Output VAT is the VAT charged by the seller on their sales, while input VAT is the VAT paid by the seller on their purchases. Net VAT is the difference between output VAT and input VAT, and is the amount that the seller ultimately pays to the government. The infographic also explains the concept of VAT charge on sales. It also outlines the process of VAT returns.