VAT
VAT is a tax added to the price of goods and services in countries that have it.
In a simple example
A shop adds 5 percent VAT to a 100 dinar item where the rule applies, and passes the tax to the government.
Why it matters to you
If your country charges VAT, a wrong invoice can cost you fines, so check the rules with your accountant.
Do not confuse with
VAT is paid by the customer but collected by you. It is not your profit.