Value-added tax

/vˈaljuːˈadɪd tˈaks/

/vˈæljuːˈædᵻd tˈæks/

Value-added tax

a tax put on the value added to a product at each stage of the supply chain, affecting the final price which the consumer pays

synonyms : ad valorem tax

VAT

Examples

1. The vast majority of countries in the world have a value-added tax, but a glaring exception is the United States, which relies on sales taxes instead.

2. You would pay for it in large percent with a 10 percent value-added tax.

3. A portion of that has to be captured in the equivalent use tax, a sales tax or a value-added tax.

4. If you're in Europe, it would be a value-added tax, which would be effectively a pure tax on that.