value-added tax

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Related to Value-Added Taxes: income tax, sales tax

value-added tax

(VAT), levy imposed on business at all levels of the manufacture and production of a good or service and based on the increase in price, or value, provided by each level. Because the consumer ultimately pays a higher price for the taxed commodity, a VAT is essentially a hidden sales tax. Originally introduced in France (1954), it is now a major part of the tax structure of most Western European nations. In the early 1990s the U.S. government considered instituting a VAT to fund national health care programs.
References in periodicals archive ?
As a result, the company said it feels that the Tax Administration's decision to collect these unpaid value-added taxes along with related penalties and interests from Kamux is unfounded.
Last week in the monthly conference of the Society of Tax and Investment Experts, the move to value-added taxes was discussed.
Sales taxes throughout the United States and value-added taxes around the world are riddled with loopholes.
In this broadest context, the national sales tax and the flat tax are also value-added taxes. The sales tax at the retail level applies to the aggregate value of goods and services sold directly to consumers.
Like most value-added taxes, the Chinese VAT is assessed on the sales of goods and some services (such as repairs), generally at a 17-percent rate.
Broadly speaking, the alternatives fall into two categories: (1) a single-stage, retail-level sales tax imposed on and collected from the consumer; and (2) varying forms of value-added taxes collected directly at levels preceding the consumer level and recovered indirectly from the consumer through the retail-level price.

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