value-added tax


: an incremental excise that is levied on the value added at each stage of the processing of a raw material or the production and distribution of a commodity and that typically has the impact of a sales tax on the ultimate consumer

Example Sentences

Recent Examples on the Web The various Indian state governments earn a big portion of their revenue from excise and value-added tax on alcoholic drinks. Mimansa Verma, Quartz, 10 Nov. 2022 In the 18 months of the pandemic, more than half of the revenue for local governments have come from property, as corporate-income and value-added tax receipts declined. John Lee, WSJ, 6 Oct. 2021 Under the region’s customs union, imports of pasta face a tariff of 20% and also value-added tax of 15%. The Economist, 15 Mar. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'value-added tax.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Word History

First Known Use

1935, in the meaning defined above

Time Traveler
The first known use of value-added tax was in 1935

Dictionary Entries Near value-added tax

Cite this Entry

“Value-added tax.” Dictionary, Merriam-Webster, Accessed 9 Dec. 2022.

Legal Definition

value-added tax

value-ad·​ded tax
: a tax levied at each addition of value in the processing of a raw material, the performance of a service, or the production and distribution of a commodity with each payer except the consumer reimbursed from payment at the next stage

called also VAT

More from Merriam-Webster on value-added tax

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