The Effect of VAT on Automobile Marketing Business & Marketing Essay (Essay Sample)

The Effect of VAT on Automobile Marketing
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The Effect of VAT on Automobile Marketing
Value-Added Tax (VAT) is an ingestion tax positioned on commodities every time cost is added at each phase of the supply chain, from fabrication to the point of transaction (Adilova, 2017). From the definition of VAT, it is apparent that the paper aims at illustrating in detail on the effect of VAT on the automobile marketing business. The details of the illustrations are as follows:
The implementation of VAT is a corporate occurrence for the growth of the budget and presently, VAT has been implemented in numerous nations. The effect of VAT on automobile marketing will consist of both the long-term and short-term. For instance, the long-term effects will entail prices being affected as VAT will be allocated on new vehicle sales and on the short-term perspective, the approach will lead to a point in petition before VAT is familiarized as consumers try to overcome the increase in cost (Adilova, 2017). The other effect of VAT on the motor marketing industry, especially in the UAE is a possibility of demanding apprehensions like “logistics, work capital cash flow, estimating and catalogue handling.”