1

vat

noun \ ˈvat \
Updated on: 13 Oct 2017

Definition of vat

1 :a large vessel (such as a cistern, tub, or barrel) especially for holding liquors in an immature state or preparations for dyeing or tanning
2 :a liquor containing a dye converted into a soluble reduced colorless or weakly colored form that on textile material steeped in the liquor and exposed to the air is converted by oxidation to the original insoluble dye and precipitated in the fiber

Recent Examples of vat from the Web

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

Origin and Etymology of vat

Middle English vet, vat, southern variant of fat, fet, going back to Old English fæt, going back to Germanic *fata- (whence Old Saxon fat "vessel," Old High German faz); akin to Lithuanian púodas "pot"

Other Alcoholic Beverage Terms


2

vat

verb

Definition of vat

vatted; vatting
transitive verb
:to put into or treat in a vat

First Known Use of vat

1784


VAT

abbreviation

Definition of VAT

value-added tax

Financial Definition of VAT

VAT

What It Is

A value added tax (VAT) is a consumption tax added to a product's sales price. It represents a tax on the "value added" to the product throughout its production process.

How It Works

The VAT system is invoice-based. Each seller in the product chain includes a VAT charge on the buyer's invoice. Under a VAT taxation system, all sellers collect the tax and then pay it to the government. The VAT gives sellers along the supply chain a direct economic motivation to collect the tax, thereby reducing the incidence of tax evasion.

Don't confuse the VAT with sales tax. Under a sales tax, the tax is collected only once at the consumer's point of purchase. The VAT tax, however, is collected every time a business purchases products from other businesses within the product's supply chain.

Why It Matters

The VAT is a highly efficient flat consumption tax that reduces the incidence of non-compliance. More than 100 countries have adopted it -- with rates ranging from 10% - 25%.

Investors who are looking for safer overseas investments should consider whether the prospective country uses a VAT, which indicates a more stable fiscal environment.


VAT Defined for English Language Learners

vat

noun

Definition of vat for English Language Learners

  • : a large container (such as a tub or barrel) used especially for holding liquids


VAT Defined for Kids

vat

noun \ ˈvat \

Definition of vat for Students

:a large container (as a tub) especially for holding liquids in manufacturing processes

Law Dictionary

VAT

noun \ ˌvē-ˌā-ˈtē \

legal Definition of VAT



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