Value-added Taxes (VAT)
Taxes applied to each stage of production in which value is added to a good or service.
For example when a radio is built by a company in Europe the manufacturer is charged a value-added tax on all of the supplies they purchase for producing the radio. Once the radio reaches the shelf, the consumer who purchases it must pay the value-added tax that applies to him or her.
For example when a radio is built by a company in Europe the manufacturer is charged a value-added tax on all of the supplies they purchase for producing the radio. Once the radio reaches the shelf, the consumer who purchases it must pay the value-added tax that applies to him or her.