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.