value-added tax (vat)
Value-added tax (VAT) is a type of consumption tax imposed on goods and services at every stage of production or distribution. It is a tax levied on the value added to a product at each stage of its manufacture or distribution, ensuring that businesses pay taxes on the value they add to the final product rather than solely on their profit.
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Related Concepts (25)
- consumption tax
- corporate tax
- cross-border transactions
- direct tax
- excise tax
- fiscal policy
- flat tax
- goods and services tax (gst)
- government revenue
- harmonized sales tax (hst)
- indirect tax
- input tax
- international trade
- output tax
- sales tax
- sales taxes
- tax evasion
- tax exemption
- tax policies
- tax policy
- tax policy reforms
- tax reform
- taxable supplies
- taxation
- taxation policies