## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/uk/books/kb/llms.txt

Use this file to discover all available documentation pages before proceeding.

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# What is a Value Added Tax?

Taxes that can be reclaimed from the tax authority is called a value added tax.

For example, if you sell items worth $200 at 5% value added tax, you collect $10 as taxes from your customer.

Similarly, if you purchase items for $100 at 5% value added tax, you have to pay $5. Since this tax is reclaimable, you can claim $5 ($10-$5) on these transactions.