Value-Added Tax
/ˈvæljuːˌædɪd tæks/
Definitions
- (n.) A consumption tax levied on the incremental value added to goods and services at each stage of production or distribution.
The company must remit the value-added tax collected on its sales to the government.
Related terms
See also
Commentary
The term refers to a multistage tax system distinct from single-stage sales taxes; precise drafting should clarify the taxable event and the taxable base.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.