value-added tax

noun

1. an excise tax based on the value added to a product at each stage of production or distribution: value added is arrived at by subtracting from the total value of the product at the end of each production or distibution stage the value of the goods bought at its inception. : VAT

value-added tax

noun

1. (in Britain) the full name for VAT

value-added tax

1. A tax on the value added to a product at each stage of its production, from raw materials to finished product. Widely employed in Europe , value-added taxes have the advantage (for governments) of raising revenue “invisibly,” that is, without appearing as taxes on the bill paid by the consumer .

Word History and Origins

Origin of value-added tax¹

First recorded in 1930–35

Example Sentences

India has driven more of the economy into the formal sector, for instance by enacting a goods and services tax like Europe’s value-added tax, allowing more revenue to be extracted from more people and businesses.

From Seattle Times

India has driven more of the economy into the formal sector, for instance by enacting a Goods and Services Tax like Europe’s value-added tax, allowing more revenue to be extracted from more people and businesses.

From New York Times

In 1982, he sought to raise government income by imposing a value-added tax on children’s shoes.

From New York Times

The ruling means Walkers, the company that makes poppadoms and dozens of other snack foods, will have to pay the same value-added tax on its poppadoms as it does on its various crisps.

From New York Times

The tax reform will merge the five main levies into two value-added taxes: one federal and another to be shared between states and municipalities.

From Washington Times