A value added tax is a consumption tax on a product when value is added at a production stage or final sale. The amount of VAT is the cost of a product minus costs of materials that have already been taxed. A manufacturer is charged a value added tax on the supplies it buys for producing a product. A consumer must pay the VAT that applies to him. VAT is also known as a goods and services tax. Value added taxes (VAT) and goods & services taxes are taxes on the purchase price, or taxes on inputs in manufacturing and distribution. A VAT is different from a sales tax regarding supply chain, end consumers, collection and remittance, point of purchase, and end consumer.

Tax Analysts provides insight on a federal consumption tax and tax reform. Important ideas related to a VAT are alternative revenue sources, funding mechanisms, taxable inputs, and the tax base of a VAT. Tax Analysts offers commentary on traditional value added tax (VAT) examples, such as a consumed income tax, the X tax, cash flow taxes, and immediate expensing of capital acquisitions, as well as VAT-lite, subtraction method VAT, and common credit invoice VAT.

Value added tax (VAT) notes are related to tax reform, revenue neutral ideas, and alternative revenue sources.

Value added taxes (VAT) may require accounting considerations. Tax Analysts offers observations for types of VAT-related topics such as the necessity of a VAT, supply-side economics, the limits of a VAT, the effect on imports and exports, and how a flat tax, territorial tax, depreciation and expensing, corporate income tax, are related or differ from a VAT.