The Value Added Tax (VAT) significantly influences both demand and supply in an economy. When VAT increases, the cost of goods rises, leading to a decrease in consumer demand. On the supply side, businesses face higher production costs, often passing these onto consumers. This dynamic can slow economic growth if not managed properly. Moreover, VAT compliance becomes crucial for businesses, especially during Tax Filing periods. Proper tax filing ensures that companies remain legally compliant and can claim input tax credits, which helps balance financial burdens. Thus, VAT plays a pivotal role in shaping market behavior and economic stability.