Definitions for value-added tax
val·ue-added tax

Princeton's WordNetRate this definition:0.0 / 0 votes

1. VAT, value-added tax, ad valorem taxnoun

   a tax levied on the difference between a commodity's price before taxes and its cost of production

WikipediaRate this definition:0.0 / 0 votes

1. Value-added tax

   A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. If the ultimate consumer is a business that collects and pays to the government VAT on its products or services, it can reclaim the tax paid. It is similar to, and is often compared with, a sales tax. VAT is an indirect tax because the person who ultimately bears the burden of the tax is not necessarily the same person as the one who pays the tax to the tax authorities. Not all localities require VAT to be charged, and exports are often exempt. VAT is usually implemented as a destination-based tax, where the tax rate is based on the location of the consumer and applied to the sales price. The terms VAT, GST, and the more general consumption tax are sometimes used interchangeably. VAT raises about a fifth of total tax revenues both worldwide and among the members of the Organisation for Economic Co-operation and Development (OECD).: 14  As of 2018, 174 of the 193 countries with full UN membership employ a VAT, including all OECD members except the United States,: 14  where many states use a sales tax system instead. There are two main methods of calculating VAT: the credit-invoice or invoice-based method and the subtraction or accounts-based method. In the credit-invoice method, sales transactions are taxed, the customer is informed of the VAT on the transaction, and businesses may receive a credit for the VAT paid on input materials and services. The credit-invoice method is by far the more common and is used by all national VATs except for Japan. In the subtraction method, a business at the end of a reporting period calculates the value of all taxable sales, subtracts the sum of all taxable purchases, and applies the VAT rate to the difference. The subtraction method VAT is currently used only by Japan although it, often by using the name "flat tax," has been part of many recent tax reform proposals by US politicians. With both methods, there are exceptions in the calculation method for certain goods and transactions that are created to help collection or to counter tax fraud and evasion.

ChatGPTRate this definition:0.0 / 0 votes

1. value-added tax

   A value-added tax (VAT) is a type of consumption tax that is placed on a product or service whenever value is added at each stage of the supply chain, from production to the point of sale. It is based on the increase in value of a product or service at each stage of production or distribution. VAT is usually expressed as a percentage of total cost. It is primarily used in many European countries.

Matched Categories

1. • Excise

How to pronounce value-added tax?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say value-added tax in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of value-added tax in Chaldean Numerology is: 4

2. Pythagorean Numerology

   The numerical value of value-added tax in Pythagorean Numerology is: 7

Examples of value-added tax in a Sentence

1. Alexandre Bompard:

   They pour their products onto markets without even paying value-added tax, and hardly any other tax at all, it is intolerable. On the same turnover they should pay the same tax.

2. Karl Tachelet:

   While it is clearly an important result, it is only one feature in a universe of other measures that China foresees for its steel sector, these include direct subsidies, soft loans from state banks, VAT (value-added tax) rebates on some product categories, energy and input subsidies, and occasionally direct grants, among others.

3. Nojibur Rahman:

   The target will be achievable as potential to collect income tax, value added tax (VAT) and customs for this year is much higher.

4. Li Dongsheng:

   I advise the government to further lower value-added tax, and if implemented, it will effectively boost the profit-making ability of the manufacturing industry.

5. Karl Tachelet:

   These include direct subsidies, soft loans from state banks, VAT (value-added tax) rebates on some product categories, energy and input subsidies, and occasionally direct grants, among others.

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=value-added tax
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Value-Added_Tax
3. ^ ChatGPT
   https://chat.openai.com