The-definition.com

Definition

Value-added Tax

One type of tax that has achieved great prominence is the value-added tax. The value-added tax is a type of national sales tax collected at each stage of production or sale of consumption goods in proportion to the value added during that stage. The value-added tax has been adopted as the main source of revenue from indirect taxation by all members of the European Union, most other countries in Western Europe, a number of Latin American countries, Canada, and scattered other countries.

Share it:  Cite

More from this Section

  • Bearer bonds
    Bearer bonds are bonds that are not registered on the books of the issuer. Such bonds ...
  • Borrowed reserves
    Borrowed reserves is a bank’s borrowings from the Fed. ...
  • Qualified Institutional Buyer (QIB)
    A qualified institutional buyer (QIB) is an entity (except a bank or a savings and loan) ...
  • Shared services
    Shared services— charges to compensate the parent for costs incurred in the general ...
  • Monetary Targeting
    Monetary Targeting is a policy which attempts to directly limit the growth in the total ...