VAT free is a term used to describe a transaction in which goods or services are provided without Value Added Tax (VAT) being charged. VAT is a tax that is charged on the sale of goods and services in some countries.
In countries where VAT is charged, businesses must register for VAT and charge it on all sales. This means that customers must pay the additional cost of the VAT when they purchase goods or services. However, in some cases, businesses may be able to provide goods or services without charging VAT. This is known as a VAT free transaction.
VAT free transactions are typically offered to businesses that are registered for VAT in another country. This means that the business is not required to charge VAT on the sale of goods or services to customers in the other country. This can be beneficial to businesses as it helps to reduce costs and make their products more competitive in the global market.
In some cases, businesses may also be able to offer VAT free transactions to customers in their own country. This is usually done when the customer is a business that is registered for VAT in another country. This means that the customer does not have to pay the additional cost of VAT when they purchase goods or services from the business.
VAT free transactions can be beneficial to businesses and customers alike. For businesses, it can help to reduce costs and make their products more competitive in the global market. For customers, it can help to save money on their purchases.