Definition of value-added tax in English:

value-added tax

Syllabification: val·ue-add·ed tax
(abbreviation: VAT)

noun

  • A tax on the amount by which the value of an article has been increased at each stage of its production or distribution.
    More example sentences
    • The French and German governments have prepared a paper for the convention on the future of Europe which proposes to harmonise corporation tax and value added tax to improve the single market.
    • An alternative would be to allocate a proportion of value added tax directly to local authorities.
    • Taxes for big business and the rich are to be lowered even further, while the broad population will be subjected to a 2 percent increase in value added tax.

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Pronunciation: meɪdʒ
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