Investor Glossary-value added taxInvestor Glossary-value added taxInvestor Glossary-value added taxInvestor Glossary-value added taxInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Value Added Tax

The HTML to link to this page
 

A value added tax is sometimes referred to as VAT. A value added tax is added to the price of a product at each stage of its manufacture or distribution. As more "value" is added to a product, value added tax, based on a percentage of the increased value, is paid. For example, a log would be subject to value added tax based on the price paid by the lumber mill. Finished lumber made from the wood has the value added tax applied based on the added cost of milling. A table fabricated from that lumber would have more added value and another percentage of value added tax. The difference between the cost of the lumber and the table would be subject to the value added tax. The value added tax might be applied to services such as a doctor's fee. Value added tax could also be paid on the electricity distributed by a utility company. Ultimately, a value added tax is a sales tax that is paid by the end consumer of the good or service.



Rate this Value Added Tax definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 401a, real GDP, inflation, command economy, in escrow, cancelled check, ex-dividend, 1035 exchange, required rate of return, Key Rate Duration, stock market close, margin rate, average price per share, current ratio, deferred tax, Zero Cost Collar, stock split, EBITDA, implied volatility, LIBOR, balance sheet, risk management, FTSE, deferred revenue, per diem, labor relations, retained earnings, debt service coverage, phantom income, ex-dividend date, liquidity ratio, FICO score, 1031 exchange, annual return, option premium, covered put, 144a, wholly-owned subsidiary, irrevocable trust, APR, reverse mortgage, minority interest, open position, VIX, quality assurance, class C shares, dividends payable, limit order, diluted share


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use