Each registered person in the chain between the first supplier and the final purchaser or user is charged tax on taxable supplies made to him (input tax) and charges tax on taxable supplies made by him (output tax).  He pays to the TRA the excess of output tax over input tax, or recovers the excess of input tax over output tax from the Authority. The broad effect of the scheme is that businesses are not affected by VAT except in so far as they are required to administer it, and the burden of the tax falls to the final consumer.