value-added tax
/ˈvæljuː ˈædɪdɛd tæks/
NOUN
1. Tax on goods and services
A consumption tax imposed on the value added to goods and services at successive stages of production and distribution, generally collected by businesses and ultimately borne by consumers.
1.1. General consumption taxation
Used to refer to a tax applied to goods and services as they are produced, distributed, or sold, with the final economic burden generally falling on consumers.
Synonyms
- sales tax
- consumption tax
- indirect tax
Examples
- The government implemented a new value-added tax to generate additional revenue for public services.
- When shopping abroad, it's important to consider the applicable value-added tax in the final cost.
- Consumers often overlook the impact of the value-added tax on the overall price of goods and services.
Related Words
1.2. Business tax collection and reporting
Used in business and accounting contexts when calculating, collecting, reporting, and remitting tax on taxable transactions and the value added by a business.
Synonyms
- sales tax
- indirect tax
- consumption tax
Examples
- Business owners must accurately calculate and report the value-added tax on their financial statements.
- The company reviewed its value-added tax records before submitting its annual tax return.
Related Words
- tax return
- input tax
- output tax
- taxable supply
- tax invoice
- tax liability
- financial statement
1.3. Tax policy and government revenue
Used in discussions of public finance, taxation policy, and government revenue, particularly when evaluating changes to tax rates and their economic effects.
Synonyms
- consumption tax
- indirect tax
Examples
- The economist analyzed the effects of changes in the value-added tax rate on consumer behavior.
- The government considered reducing the value-added tax to encourage household spending.
Related Words
- tax policy
- public revenue
- government finance
- tax rate
- fiscal policy
- consumer spending