Value Added Tax
Value added tax (VAT) is a tax on sales. It works by being charged on the sale price of new goods and services, whether purchased by intermediate or final consumers. However, intermediate consumers may reclaim VAT paid on their inputs, so that the net VAT is based on the value added by producing this good or service.
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Famous quotes containing the words added and/or tax:
“The Frenchman invented the ruffle; the Englishman added the shirt.”
—Ralph Waldo Emerson (1803–1882)
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