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 world was not created once and for all time for each of us individually. There are added to it in the course of our life things of which we have never had any suspicion.”
—Marcel Proust (1871–1922)
“The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”
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