A value added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the value added to a product, material, or service, from an accounting point of view, by this stage of its manufacture or distribution.
VAT is a very complex area, particularly relating the EU. We have invested much time and energy in familiarising ourselves with the overall picture and while it is a moving target this is our understanding of the current VAT/TVA landscape during the summer of 2014.