Consumption tax

Meaning

Consumption tax is the tax that you add when you invoice your clients. Other names for consumption tax are VAT or GST.

Key points

• Consumption tax appears frequently in invoicing, payment handling, and bookkeeping workflows.
• The term improves clarity between clients, suppliers, and accounting teams.
• Consistent use supports cleaner documentation and better reporting quality.

Practical use

In Nexbal workflows, consumption tax is used to keep invoice and payment operations structured and auditable.