Value Added Tax
Value added tax (VAT) is a tax on sales. It works by being charged on the sale price of new goods and services, whether purchased by intermediate or final consumers. However, intermediate consumers may reclaim VAT paid on their inputs, so that the net VAT is based on the value added by producing this good or service.
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Famous quotes containing the words added and/or tax:
“A Roman divorced from his wife, being highly blamed by his friends, who demanded, “Was she not chaste? Was she not fair? Was she not fruitful?” holding out his shoe, asked them whether it was not new and well made. “Yet,” added he, “none of you can tell where it pinches me.””
—Plutarch (c. 46–120 A.D.)
“If you tax too high, the revenue will yield nothing.”
—Ralph Waldo Emerson (1803–1882)