A value-added tax, known in some countries as a goods and services tax, is a type of tax that is assessed incrementally.
It usually applies to end consumers, as a business you can usually deduct it or depending on local law do not have to pay it to begin with. You should check with a tax professional as to your specific needs, this varies hugely depending on county and your specific situation.
A value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed.