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Definitions from WordNet

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Value-Added Tax

Definition

A value-added tax, also known as VAT, is a type of consumption tax imposed on the value added to a product at each stage of its production and distribution. It is typically collected by businesses on behalf of the government and is based on the increase in value of the product or service at each stage of production or distribution.

Senses

1. Taxes

In the context of taxation, value-added tax refers to a tax levied on the value added to goods or services at each stage of production or distribution. It is a common form of indirect taxation implemented by many countries around the world.

Example sentence: The government recently introduced a value-added tax to generate additional revenue for public services.

2. Economic Impact

Value-added tax can also refer to the economic impact of the tax in terms of adding value to the overall economy. It is believed that this type of tax encourages businesses to invest and innovate, leading to economic growth.

Example sentence: The value-added tax has stimulated economic development by incentivizing businesses to invest in research and development.

3. International Trade

When referring to international trade, value-added tax can be a taxation system that allows businesses to claim tax credits for taxes paid on inputs (goods or services) used in the production of exported goods or services.

Example sentence: The value-added tax system encourages export-oriented businesses by allowing them to claim tax credits for taxes paid on imported raw materials.

Related Products

For books on taxation and economics related to value-added tax, you may consider checking the selection on Amazon.