# Global VAT > A value-added tax, known in some countries as a goods and services tax, is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. Pursuant to Foundation's objectives of disseminating open source intelligence on a learning platform, this economic activity is primarily VAT free, in most jurisdictions on the planet Earth. {% hint style="info" %} A. Each Fiscal Host body is therefore responsible for adherence to local VAT deduction and reporting. {% endhint %} > a. The challenge exists in correctly computing VAT and deciding which party holds liability to collect and pay to an appropriate jurisdiction. > > b. Further, it should be noted that the type of services delivered in the Foundation's value chain between the two parties are digital in nature. > > The nature of services maintained by the Foundation, and distributed are in compliane with [Open Source Policy](https://docs.muellners.info/open-source-policies/open-source-usage-and-delivery-policies) of the Foundation. \ > For e.g: Services of Foundation classify as Research and Development in one jurisdiction, consulting or Intellectual Property(IP) transfer in another, while the IP itself is open sourced. > > c. Therefore, as a global co-operative, the VAT obligations across different Fiscal Host(s) is a program specific treatment. > > Global view: Fiscal Host(s) have to regularly review E-lease contracts and general terms and conditions, once VAT/GST obligations are triggered to clarify the VAT/GST obligations of each party, especially when the law provides for a VAT/GST inclusive computation. > > If Foundation does not have a Fiscal Host in the jurisdiction of Local Law, Fiscal Host(s) of the network should be made aware that because these rules are relatively new, guidance available with respect to audits of nonresident vendors digital services is relatively sparse. > > Read more on [Fiscal Host(s](https://docs.muellners.info/fiscal-hosts/fiscal-hosts)) and [Glossary](https://docs.muellners.info/glossary). --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.openconstitution.us/global-statutes/open-bank/taxes/global-vat.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.