Redirected from Value added tax
VAT, or Value Added Tax, is a tax levied on the sale of goods and services. The difference from conventionalsalestax is that every business pays it, and it is calculated as a fraction of the value added by a business to its products. The VAT was invented because very highsalestaxes and tariffs encourage cheating and smuggling. The VAT is common in countries of the European Union.
