Value Added tax is a form of sales tax, the realization of which is segmented into partial payments which are calculated on the basis of value added at each stage of the production and distribution process. The value added tax is subject to every stage of the transport cycle but only the added value in each stage of the turnover is taxed, and this appears to be a tax base that is not liable to the supply of goods and services, but VAT is paid to the value that is Added to the taxable stage. According to the principle of destination, all goods and services are taxable at the place of wear, i.e. no matter where they are manufactured. Imports are taxed, and exports are not taxed. When the added value of the destination principle is taxed, it means that Value Added tax is paid where it is spent well. Thus, products exported and leaving the country are exempt from value added tax, but are taxed in the country where they are spent. In this way, imports and domestic products compete on an equal footing in the domestic market.