When you see the phrase ‘VAT included,’ it indicates that the price of a product or service already incorporates Value Added Tax (VAT). This means that the total amount you pay at the checkout is inclusive of any tax that is assessed on that item.
For example, if a product is priced at $120 and it states that ‘VAT included,’ this $120 reflects the full cost, and the VAT component has already been accounted for in that price. VAT is a consumption tax placed on goods and services, and the rates can vary depending on the country and the type of goods or services provided.
This inclusion is beneficial for consumers because it provides transparency; what you see is indeed what you pay. It’s particularly important in countries where VAT rates fluctuate, as it helps avoid any surprises at the point of sale. In contrast, if a price is listed as ‘VAT excluded,’ it means that you will need to add the VAT amount to the base price to determine the total cost.