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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

Example Sentences

Recent Examples on the Web 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

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

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