Research Report Value-Added Tax, National
From The Encyclopedia of Taxation and Tax Policy
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The value-added tax (VAT) is a broad-based tax on business designed to measure net dollar value generated in a country. The usual VAT is a general sales tax on all goods and services. It is levied at each stage of production and accumulates so that it is equivalent to a tax on all final household consumption. The VAT is designed to raise large amounts of revenue (typically 5 to 10% of gross domestic product) without creating economic distortions. It has become the most popular sales tax in the world.
Research Areas Taxes and budgets
Tags Campaigns, proposals, and reforms Federal tax issues and reform proposals
Policy Centers Income and Benefits Policy Center