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Markets and prices

Prices and VAT

Almost every price contains VAT, a tax for the government. In Belgium it is 6, 12 or 21%, depending on what you buy.

1st grade (secondary)Ages 12 to 14Draft: Not yet reviewed by an economics teacher.

Why

At the bottom of your supermarket receipt there is a little table with 6% and 21%. What do those numbers mean, and who gets that money?

That little table is the VAT overview. VAT stands for value added tax. With almost everything you buy, you pay a small piece of tax as well.

The shop does not keep that piece. It passes it on to the government. If you know how VAT works, you understand better where your money goes and you can compare prices with and without VAT.

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