value-added tax

noun

: 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

Examples of value-added tax in a Sentence

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

Lord De La Warr paid $179,255 for it (including buyer’s premium and value-added tax) after it was originally estimated to go for between $54,000 and $81,000 by Summers Place Auctions. —Téa Kvetenadze, Forbes, 7 Oct. 2021

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

Word History

First Known Use

1935, in the meaning defined above

Rhymes for value-added tax

• cephalothorax
• hemophiliacs
• almanacs
• carrybacks
• haversacks
• lumberjacks
• maniacs
• microcracks
• minimax
• paperbacks
• parallax
• quarterbacks

Legal Definition

value-added tax

noun

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