The "value added tax (VAT)" is a consumption tax imposed on the sale of goods and services. It is added by businesses to the price of their products or services and then remitted to the tax authorities. In Germany, VAT is also known as "Mehrwertsteuer" (MwSt.). Typically, businesses are required to charge VAT on their sales and then remit it to the tax office. At the same time, they can also deduct input VAT amounts that they have paid when purchasing goods and services from the VAT they owe.