VAT, or Value Added Tax, on Amazon refers to the tax that is added to the sale price of a product or service. This tax is collected by the seller and remitted to the government. The VAT rate and applicable laws vary by country and jurisdiction, but the general idea is to tax the added value at each stage of the supply chain, from the manufacturer to the end customer. When purchasing products on Amazon, the VAT is typically included in the final price and may be itemized as a separate line item on the invoice or receipt. It is important for businesses selling on Amazon to understand and comply with their local VAT requirements in order to avoid any potential penalties or legal consequences.