| Term | Value added tax (VAT) | | Definition | A value added tax (VAT) is a tax on products collected in stages by enterprises; it is a wide-ranging tax usually designed to cover most or all goods and services but producers are obliged to pay to government only the difference between the VAT on their sales and the VAT on their purchases for intermediate consumption or capital formation, while VAT is not usually charged on sales to non-residents (i.e. exports). | | Paragraphs | 6.207.;6.208.;[15.47.] |
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