Value-Added-Tax Definition

Below please find a definition of “Value-Added-Tax”

Financial Analysis Training & Glossary TermsValue-Added-Tax: It is very common practice to add a tax also known as consumption tax to a product when it reaches the final stage of production or is ready for final sale to customers. This consumption tax is termed as value-added-tax. For example if a television company is built by a company in Europe, a value-added-tax is applied to the product before it is made available to the consumer. The consumer has to pay for the value-added-tax that is applicable to them.

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