eCommerce Wordbook

Value Added Tax

Logistics Glossary

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. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed The value added tax is imposed throughout the European Community and European Free Trade Association (EFTA) countries and many other trading nations, but not the U.S.

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