What Is A Value Added Tax?

Source: EconLog
by Pierre Lemieux

“A VAT is a consumption tax, similar to a sales tax, charged to final domestic consumers within a given territory. It is different from an ordinary sales tax in that it is collected from businesses at each stage where value is added along the chain of production. But it is a consumption tax and carries no net burden on businesses (except in terms of regulatory cost).” (09/30/25)

https://www.econlib.org/what-is-a-value-added-tax