The Value-Added Tax (VAT) is a type of consumption tax assessed on the value added to goods and services as they move through the supply chain. It is a general tax that applies to all commercial activities involving the production and distribution of goods and the provision of services. The VAT is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. The tax is assessed and collected at each stage, and the VAT due on any sale is a percentage of the sale price. The actual rates applied vary between countries and between certain types of products.

The standard rate of VAT in China is 13%, with a reduced rate of 9% that applies to certain products and 6% for services except for PPE lease. In the European Union, the standard VAT rate cannot be less than 15%, and the reduced VAT rate(s) cannot be less than 5%. The standard VAT rate in the UK is 20%, with a reduced rate of 5% on certain purchases such as childrens car seats and home energy. The general VAT rate in Indonesia is 10%, with plans to raise the standard VAT rate to 12%. Vietnam has three VAT rates: 0%, 5%, and 10%, with 10% being the standard rate applied to most goods and services unless otherwise stipulated.

In conclusion, the VAT rate varies between countries and products, and it is a tax assessed on the value added to goods and services as they move through the supply chain.