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process. when an end-consumer makes a purchase, they are not only paying for the vat for the product at hand (e.g., a cup of coffee), but in effect, the vat for the entire production process (e.g., the purchase of the coffee beans, their transportation, processing, cultivation, etc.), since vat is always
). the vat mechanism means that the end-user tax is the same as it would be with a sales tax. the main disadvantage of vat is the extra accounting required by those in the middle of the supply chain; this is balanced by the simplicity of not requiring a set of rules to determine who is and is not considered...
https://en.wikipedia.org/wiki/Value-added_tax