Vat

A vat is a large container designed to hold liquids for processing, mixing, storage, or fermentation. Vats are commonly made of wood, steel, concrete, or fiberglass and can be insulated or heated. They are used in industries such as brewing, winemaking, chemical processing, dairy production, tanning, and wastewater treatment. In many settings, vats are mounted on supports or integrated into processing lines and may include mixing devices, agitators, or heating jackets.

Value-added tax (VAT) is a type of consumption tax applied on the value added to goods and services at each stage of production and distribution. Businesses collect VAT on their sales and are allowed to deduct the VAT they have paid on purchases (input tax credit), with the net amount remitted to the government. The tax generally operates on a destination basis, meaning it is accrued where the final consumption occurs. Rates, exemptions, and administration vary by jurisdiction.

VAT is designed to be broad-based and neutral, though many countries apply reduced rates or exemptions for essentials such as food, healthcare, or education. Compliance typically involves registration for VAT, issuing tax invoices, maintaining records, and periodic VAT returns. VAT systems aim to reduce tax cascading and increase revenue, but are subject to fraud risks such as carousel fraud and phantom VAT. International trade introduces rules for cross-border VAT, including import VAT and simplified mechanisms.

Other uses of the word vat include vat dyes in textiles, a class of dyes that are insoluble in water until chemically reduced to a soluble form in a vat. The term can also refer to the large containers used in traditional tanning, distilling, and fermentation practices.