value-added tax

Definition of "value-added tax"
  1. 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
How to use "value-added tax" in a sentence
  1. The cellphone manufacturer has to pay a value-added tax for each phase of the device production.
  2. As part of the regulations, the cafe is required to charge a value-added tax.
  3. 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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