value-added tax
- A type of tax applied at every stage where value is added during the creation, service provision, production, or distribution phases of a commodity, with reimbursements given to all payers except the end consumer
- The cellphone manufacturer has to pay a value-added tax for each phase of the device production.
- As part of the regulations, the cafe is required to charge a value-added tax.
- In the final cost of the goods, a value-added tax is included which the consumer pays, with other payers being reimbursed.
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