Value-added tax

VATvalue added taxGoods and Services Taxvalue added taxesGSTExcess Output or Input TaxExpanded Value Added Tax Lawvalue addedValue Added TAX (VAT)VATs
A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally.wikipedia
992 Related Articles

Consumption tax

consumptionconsumption taxesbroad-based consumption tax
Confusingly, the terms VAT, GST, consumption tax and sales tax are sometimes used interchangeably.
Consumption taxes are usually indirect, such as a sales tax or a value-added tax.


A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally.
Since governments also resolve commercial disputes, especially in countries with common law, similar arguments are sometimes used to justify a sales tax or value added tax.

Maurice Lauré

Maurice Lauré, Joint Director of the France Tax Authority, the Direction Générale des Impôts implemented the VAT on 10 April 1954, although German industrialist Dr. Wilhelm von Siemens proposed the concept in 1918.
Maurice Lauré (1917 - 20 April 2001) is primarily known for creating the taxe sur la valeur ajoutée (TVA in French, otherwise known as value added tax (VAT) in English).

Sales tax

salessales taxesnational sales tax
However, a VAT is collected by the end retailer and is usually a flat tax, and is therefore frequently compared to a sales tax.
A value-added tax (VAT) collected on goods and services is similar to a sales tax.


excise taxexcise dutiesexcise duty
(Quebec has a de facto 14.975% HST: its provincial sales tax follows the same rules as the GST, and both are collected together by Revenu Québec.) Advertised and posted prices generally exclude taxes, which are calculated at time of payment; common exceptions are motor fuels, the posted prices for which include sales and excise taxes, and items in vending machines as well as alcohol in monopoly stores.

Duty-free shop

duty-freeduty freeduty-free store
Not all localities require VAT to be charged and goods and services for export may be exempted (duty free).
For certain other purchases, a VAT refund may be claimed at the airport upon departure.

Harmonized sales tax

HSTa single tax combining both formsharmonize
A Harmonized Sales Tax (HST; combined GST and provincial sales tax) is collected in New Brunswick (15%), Newfoundland (15%), Nova Scotia (15%), Ontario (13%), Prince Edward Island (15%), and, for a short time until 2013, British Columbia (12%).
It is used in provinces where both the federal goods and services tax (GST) and the regional provincial sales tax (PST) have been combined into a single value added sales tax.

United Arab Emirates

UAEEmiratiUnited Arab Emirates (UAE)
In particular, the United Arab Emirates (UAE) on 1 January 2018 implemented VAT.
The UAE government does not levy income tax although there is a system of corporate tax in place and value added tax was established in 2018 at 5%.

Indirect tax

indirect taxationindirect taxesindirect
Like other countries' sales and VAT, it is an indirect tax.
An indirect tax (such as sales tax, per unit tax, value added tax (VAT), or goods and services tax (GST ), excise, tariff) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer).

Goods and Services Tax (India)

Goods and Services TaxGSTGoods and Service Tax
Under the BJP government, a new national Goods and Services Tax was introduced under the One Hundred and First Amendment of the Constitution of India.
Subsequently, Prime Minister P V Narasimha Rao and his Finance Minister Manmohan Singh, initiated early discussions on a Value Added Tax (VAT) at the state level.

Sales taxes in the United States

sales taxstate sales taxsales taxes
Instead, a sales and use tax is used in most US states.
Unlike the value added tax, a sales tax is imposed only at the retail level.

European Union value added tax

The European Union value added tax (EU VAT) covers consumption of goods and services and is mandatory for member states of the European Union.
The European Union value added tax (or EU VAT) is a value added tax on goods and services within the European Union (EU).

Corporate tax

corporation taxcorporate income taxbusiness tax
When it was adopted in 1975, it replaced seven business taxes, including a corporate income tax.
Corporations property tax, payroll tax, withholding tax, excise tax, customs duties, value added tax, and other common taxes, are generally not referred to as “corporate tax.”

Goods and services tax (Australia)

Goods and Services TaxGSTGoods and Services Tax (GST)
The goods and services tax (GST) in Australia is a value added tax of 10% on most goods and services sales, with some exemptions (such as for certain food, healthcare and housing items ) and concessions (including qualifying long term accommodation which is taxed at an effective rate of 5.5% ).

Goods and services tax (Canada)

Goods and Services TaxGSTGoods and Services Tax (GST)
The goods and services tax (GST) (taxe sur les produits et services, TPS) is a multi-level value added tax introduced in Canada on January 1, 1991, by then-Prime Minister Brian Mulroney and his finance minister Michael Wilson.


SpitzbergenSvalbard ArchipelagoSpitsbergen
Svalbard has no VAT because of a clause in the Svalbard Treaty.
Therefore, Svalbard has a lower income tax than mainland Norway, and there is no value added tax.

Andrew Yang

YangAndrew Yang (entrepreneur)
2020 Democratic Presidential candidate Andrew Yang is among current politicians proposing a national VAT in order to pay for universal basic income.
Yang proposes a value-added tax to finance the dividend and to combat tax avoidance by large American corporations.

Goods and Services Tax (New Zealand)

GSTGoods and Services Taxdoods and services tax
Goods and Services Tax (GST) is a value-added tax or consumption tax for goods and services consumed in New Zealand.

Goods and Services Tax (Malaysia)

Goods and Services TaxGSTGoods and Services Tax Act 2014
The Goods and Services Tax (GST) is an abolished value-added tax in Malaysia.


GIBGibraltar Health AuthorityGibraltarian
It is also a popular shopping destination, and all goods and services are VAT free, but may be subject to Gibraltar taxes.

List of countries by tax rates

state taxTax rates around the worldlocal taxation
* List of tax rates around the world
The list focuses on the main indicative types of taxes: corporate tax, individual income tax, and sales tax, including VAT and GST, but does not list capital gains tax.

Goods and Services Tax (Singapore)

Goods and Services TaxGSTGoods & Services Tax
Goods and Services Tax (Abbreviation: GST) in Singapore is a broad-based value added tax levied on import of goods, as well as nearly all supplies of goods and services.

Destination-based cash flow tax

border adjustment taxborder-adjustment tax
A border-adjustment tax (BAT) was proposed by the Republican Party in their 2016 policy paper "A Better Way — Our Vision for a Confident America", which promoted a move to a "destination-based cash flow tax" (DBCFT), in part to compensate for the U.S. lacking a VAT.
and the "corporate tax rate would be reduced to 20%. Although this is being compared to a value added tax (VAT), "under a typical VAT...the corporation couldn't deduct its wages." but under the Brady and Ryan blueprint, wages could be deducted so this would be an "indirect VAT."

Value-added tax in the United Kingdom

VATValue Added Taxvalue-added tax
In the United Kingdom, the value-added tax (or value added tax, VAT) was introduced in 1973, replacing Purchase Tax, and is the third-largest source of government revenue, after income tax and National Insurance.

Missing trader fraud

carousel fraudMissing Trader Intra-CommunityVAT carousel fraud
However, because of its particular mechanism of collection, VAT becomes quite easily the target of specific frauds like carousel fraud, which can be very expensive in terms of loss of tax incomes for states.
Missing trader fraud (also called missing trader intra-community or MTIC) and the related carousel fraud is the theft of Value Added Tax (VAT) from a government by organised crime gangs who exploit the way VAT is treated within multi-jurisdictional trading where the movement of goods between jurisdictions is VAT-free.