19 Facts About Value-added tax

Value-added tax, known in some countries as a goods and services tax, is a type of tax that is assessed incrementally.

The subtraction method VAT is currently used only by Japan although it, often by using the name "flat Value-added tax, " has been part of many recent Value-added tax reform proposals by US politicians.

Standard way to implement a value-added tax involves assuming a business owes some fraction on the price of the product minus all taxes previously paid on the good.

Value-added tax avoids the cascade effect of sales tax by taxing only the value added at each stage of production.

Supply and demand economic model suggests that any Value-added tax raises the cost of transaction for someone, whether it is the seller or purchaser.

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Goods and services tax is a value-added tax introduced in Australia in 2000, which is collected by the Australian Tax Office.

European Union value-added tax covers consumption of goods and services and is mandatory for member states of the European Union.

Value-added tax was introduced into the Indonesian taxation system from 1 April 1985.

Value-added tax was first imposed in Israel on 1 July 1976, by virtue of the Value Added Tax Law, following the recommendations of the Asher Committee, which dealt with this matter during the first Rabin government.

Goods and services tax is a value-added tax introduced in Malaysia in 2015, which is collected by the Royal Malaysian Customs Department.

Value-added tax is a tax applied in Mexico and other countries of Latin America.

On 29 December 1978 the Federal government published the official application of the Value-added tax beginning on 1 January 1980 in the Official Journal of the Federation.

Taxpayers of value-added tax are recognized:Organizations, enterprises with foreign investments, individual entrepreneurs, international associations and foreign legal entities that carry out entrepreneurial activities in the territory of the Russian Federation, non-commercial organizations in the event of their commercial activities, and persons recognized as taxpayers of value-added tax in connection with the movement of goods across the customs border of the Customs Union.

Border-adjustment tax was proposed by the Republican Party in their 2016 policy paper "A Better Way – Our Vision for a Confident America", which promoted a move to a "destination-based cash flow tax", in part to compensate for the U S lacking a VAT.

Value-added tax in Vietnam is a broadly based consumption tax assessed on the value added to goods and services arising through the process of production, circulation, and consumption.

Some critics consider it to be a regressive Value-added tax, meaning that the poor pay more, as a percentage of their income, than the rich.

Defenders argue that relating taxation levels to income is an arbitrary standard, and that the value-added tax is in fact a proportional tax; an OECD study found that it could be slightly progressive—but still have significant equity implications for the poor—as people with higher income pay more as they consume more.

Revenues from a value-added tax are frequently lower than expected because they are difficult and costly to administer and collect.

AMTAC claims that so-called "border Value-added tax disadvantage" is the greatest contributing factor to the $5.