Education·21 January 2026·4 min read
VAT — the tax hidden in every price
Every time you buy something, you pay a tax to the state, included in the price. How VAT works.
VAT (value-added tax) is a tax included in the price of almost all goods and services. When you buy something for 100 lei, part of it (e.g. 19 lei) is VAT that goes to the state.
A tax on consumption
Unlike income tax, VAT is paid when you spend, not when you earn. It's easy to collect and brings the state a lot of money — which is why it exists almost everywhere. Now you know what that figure on the receipt means.
