value-added tax

American  

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

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value-added tax British  

noun

1. (in Britain) the full name for VAT

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value-added tax Cultural  

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.

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Etymology

Origin of value-added tax

First recorded in 1930–35

Example Sentences

Ghana has abolished its Covid-19 "Health Recovery Levy" and reduced its value-added tax in a bid to bolster economic growth, the government said Thursday.

From Barron's

Retail investors are no longer able to offset value-added tax when selling gold bought from the Shanghai Gold Exchange, the analysts add.

From The Wall Street Journal

New art galleries are opening, encouraged by Italy’s recent decision to reduce value-added tax on art sales and imports from 22% to 5%, one of the lowest rates in the European Union.

From The Wall Street Journal

The administration argues these tariffs respond to harmful foreign practices including currency manipulation and excessive value-added taxes imposed by other countries.

From Los Angeles 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 Seattle Times