Meaning of the word "value-added tax" in English

What does "value-added tax" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

value-added tax

US /ˈvæl.juːˌæd.ɪd tæks/

UK /ˌvæl.juː ˌæd.ɪd ˈtæks/

a tax on the amount by which the value of an article has been increased at each stage of its production or distribution.

Example:

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The price includes a 20% value-added tax.

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Many countries impose a value-added tax on goods and services.

Synonym:

VAT GST