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.
Read more about this topic: Value Added
Famous quotes containing the words added and/or tax:
“Exaggeration is in the course of things. Nature sends no creature, no man into the world, without adding a small excess of his proper quality. Given the planet, it is still necessary to add the impulse; so, to every creature nature added a little violence of direction in its proper path, a shove to put it on its way; in every instance, a slight generosity, a drop too much.”
—Ralph Waldo Emerson (1803–1882)
“In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.”
—Alexis de Tocqueville (1805–1859)