value-added tax
Sign in to saveform of consumption tax
AI overview
A value-added tax (VAT) is a consumption tax that is collected in stages as goods or services move through the production and distribution process, with each business paying tax only on the value it adds. It matters because many countries use it as a major source of government revenue, and it can affect prices that consumers pay and how businesses operate.
AI-generated from the Wikipedia summary — may contain errors.
Article
A map of countries and territories by their VAT status, 2025 No VAT VAT
A value-added tax (VAT), goods and services tax (GST), or general consumption tax (GCT) is a consumption tax that is levied on the value added at each stage of a product's production and distribution. VAT is similar to, and is often compared with, a sales tax. VAT is an indirect tax because individuals do not pay it directly to the government; instead, suppliers act as intermediaries by collecting the tax from customers at the point of sale and remitting it to the government. Specific goods and services are typically exempted in various jurisdictions.