Value-Added Tax (VAT) is a multi-stage tax levied on the gross profit at each step of the supply chain. It acts as a significant revenue source for governments, broad-based and difficult to evade, ensuring consistent revenue generation., A value-added tax (VAT) is a consumption tax levied at every stage of production for a good or service. This includes the raw materials producer, the factory, the wholesaler, and the retailer—all, Value-added tax (VAT) is a broad consumption tax assessed on the value added to goods and services as they move through the supply chain. This includes labor and compensation charges,, A value-added tax (VAT) is not a tariff, it is a consumption tax assessed on the value added in each production stage of a good or service. Every business along the value chain receives a tax credit for the VAT already paid. The end consumer does not, making it a tax on final consumption., Learn how value added tax (VAT) is calculated on sales and how to stay compliant with shifting rates and exemptions., Value-Added Tax is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. Unlike a simple sales tax that’s only applied at the final transaction, VAT is collected multiple times as goods move through the production cycle..