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Value Added Tax, or VAT, is a tax set forth by the Congress or Country President that increases the selling price of items at the marketplace.
The minimum VAT percentage on market prices is 1%, the maximum one is 50%.
Tax revenue is added to the country Treasury.
If a citizen decides to sell one unit of Helicopters for $1.00, and the countries VAT for Helicopters is 5%, then he will earn just $0,952 for that unit of Food (1.00/105*100).

So be careful when you place an offer on the market. A good idea to avoid losing money is to calculate your real income once VAT is applied, before to place the offer.

Tax rates can be viewed by clicking on the Economy panel.

Please note: VAT is not added to the price of raw materials.

As it is shown in the picture the VAT tax is 12 CHF