VAT definition: Copy, customize, and use instantly
Introduction
The term "VAT" (Value Added Tax) refers to a consumption tax levied on the value added to goods and services at each stage of production or distribution. VAT is a significant source of revenue for governments worldwide and is generally included in the final sale price.
Below are various examples of how "VAT" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "VAT" as a general consumption tax
This definition ties "VAT" to its role as a consumption tax levied on goods and services, ultimately paid by the final consumer.
"VAT" means a tax levied on the value added to goods and services at each stage of their production or distribution, and ultimately paid by the final consumer.
Definition of "VAT" as a value-added tax
This definition connects "VAT" to its function as a tax imposed at each production or distribution stage, with businesses collecting and remitting the tax.
"VAT" refers to a tax imposed on the value added to products at each stage of production or distribution, with businesses collecting and remitting the tax.
Definition of "VAT" as a tax on the sale of goods
This definition links "VAT" to its application at the point of sale, passed on to the consumer at the final transaction.
"VAT" means a tax applied to the sale of goods and services at each point of sale, passed onto the consumer at the final transaction.
Definition of "VAT" as a business transaction tax
This definition applies "VAT" to business transactions, where businesses are responsible for collecting and remitting the tax on goods and services they sell.
"VAT" refers to a transactional tax imposed on businesses for goods or services they sell, with the tax collected from consumers and submitted to the government.
Definition of "VAT" as a national tax
This definition ties "VAT" to its role as a tax levied by national governments on goods and services, typically included in the sale price.
"VAT" means a tax that is levied by national governments on goods and services, typically included in the sale price.
Definition of "VAT" as a tax on consumption
This definition connects "VAT" to its nature as a consumption tax, where consumers pay the tax on the goods and services they purchase.
"VAT" refers to a tax imposed on consumption, where consumers pay the tax on goods and services they purchase, often calculated as a percentage of the sale price.
Definition of "VAT" as an indirect sales tax
This definition links "VAT" to its status as an indirect sales tax that businesses collect from customers and remit to tax authorities.
"VAT" means an indirect sales tax that businesses collect from customers at the point of sale, later remitting the tax to the tax authorities.
Definition of "VAT" as a tax based on final sale price
This definition applies "VAT" to the calculation of a tax based on the final sale price of goods and services, which businesses add to the consumer price.
"VAT" refers to a consumption tax that is calculated based on the final sale price of goods and services, with businesses adding the tax to the price charged to consumers.
Definition of "VAT" as a European Union tax standard
This definition ties "VAT" to its role as a tax system used in the European Union, where tax is added at each stage of production, and rates vary by member state.
"VAT" means a tax system widely used in the European Union where tax is added to goods and services at each stage of production, with rates varying by member state.
Definition of "VAT" as a percentage of the sale price
This definition connects "VAT" to its application as a fixed percentage of the sale price of goods and services, collected from the buyer at the point of sale.
"VAT" refers to a tax levied as a fixed percentage of the sale price of goods and services, which is collected from the buyer at the point of sale.
Definition of "VAT" as an export and import tax
This definition links "VAT" to its use in export and import transactions, with refunds given on exports and taxes paid on imports.
"VAT" refers to a tax levied on goods and services during export and import transactions, generally refunded on exports and paid on imports.
Definition of "VAT" as a business cost
This definition applies "VAT" to businesses' cost of purchasing goods and services, which they can typically reclaim based on local tax laws.
"VAT" means a cost incurred by businesses on their purchases of goods and services, which they can typically reclaim, depending on local tax laws.
Definition of "VAT" as a tax on the value added
This definition connects "VAT" to its role in taxing the value added at each step of the production process, with businesses collecting the tax from consumers.
"VAT" refers to a tax on the value added at each step of the production process, with businesses collecting the tax from consumers and submitting it to authorities.
Definition of "VAT" as a progressive tax system
This definition links "VAT" to a system where the tax rate may vary based on the value added at each step of production or service provision.
"VAT" refers to a tax system where the rate of tax may vary based on the value added at each step of production or service provision.
Definition of "VAT" as a sales tax replacement
This definition applies "VAT" to its function as a replacement for traditional sales taxes, where tax is applied at every point of sale rather than just the final sale.
"VAT" means a system designed to replace traditional sales taxes, where tax is applied at every point of sale rather than just the final sale.
Definition of "VAT" as a tax applied on imports
This definition ties "VAT" to its application on imported goods, where it is calculated as a percentage of the goods' value.
"VAT" refers to a tax applied to goods imported into a country, calculated as a percentage of the imported goods' value.
Definition of "VAT" as a transparent tax
This definition links "VAT" to its clear visibility on invoices or receipts, showing how much tax is added to the purchase price.
"VAT" means a tax that is clearly indicated on invoices or receipts, showing consumers how much tax is added to their purchase price.
Definition of "VAT" as a revenue-generating tax
This definition applies "VAT" to its use by governments as a primary source of revenue from the sale of goods and services.
"VAT" refers to a tax used by governments as a primary source of revenue from the sale of goods and services.
Definition of "VAT" as a global tax standard
This definition connects "VAT" to its worldwide use as a tax model, where governments charge tax on the value added at each stage of the supply chain.
"VAT" means a globally used tax model where governments charge tax on the value added at each stage of the supply chain, ultimately paid by the final consumer.
Definition of "VAT" as a tax applied in a single transaction
This definition links "VAT" to its application in a single transaction of goods or services, calculated as a percentage of the sale price.
"VAT" refers to a tax imposed on a single transaction of goods or services, with the tax calculated as a percentage of the sale price.
Definition of "VAT" as a consumption-based tax
This definition connects "VAT" to its nature as a tax based on consumption, affecting the final consumer rather than businesses.
"VAT" means a tax based on consumption, paid by the final consumer and calculated as a percentage of the value of the goods or services consumed.
Definition of "VAT" as a national revenue tool
This definition ties "VAT" to its importance as a significant revenue tool for national governments to finance public services.
"VAT" refers to a key revenue tool for national governments, designed to generate income for public services from the sale of goods and services.
Definition of "VAT" as a transactional cost for businesses
This definition links "VAT" to its function as a transactional cost incurred by businesses on purchases, which can typically be reclaimed.
"VAT" refers to a cost incurred by businesses when purchasing goods or services, which can be reclaimed based on applicable tax regulations.
Definition of "VAT" as a tax on business sales
This definition ties "VAT" to its role in taxing businesses on the goods or services they sell, with the tax remitted to the government.
"VAT" means a tax applied to the sale of goods or services by businesses, collected from customers and remitted to tax authorities.
Definition of "VAT" as a multi-stage tax
This definition ties "VAT" to its nature as a multi-stage tax levied at various points in the supply chain, from production to final sale.
"VAT" means a multi-stage tax levied at various points in the supply chain, with the consumer ultimately bearing the full cost of the tax.
Definition of "VAT" as a tax on gross income
This definition connects "VAT" to its role in taxing the gross income of businesses generated through the sale of goods and services.
"VAT" refers to a tax levied on the gross income of businesses from the sale of goods and services, with the tax passed onto consumers.
Definition of "VAT" as a refundable tax
This definition links "VAT" to its refundable nature, allowing businesses to reclaim the tax they have paid on business-related purchases.
"VAT" means a refundable tax where businesses can reclaim the VAT they have paid on business-related purchases.
Definition of "VAT" as a tax on value addition
This definition applies "VAT" to its role in taxing the value added at each stage of the production process, rather than on the sale price.
"VAT" refers to a tax on value addition at each stage of the production process, with businesses collecting the tax from customers and remitting it to authorities.
Definition of "VAT" as a global consumption tax standard
This definition ties "VAT" to its use as a global standard for taxing consumption at each point of the production or distribution process.
"VAT" means a global consumption tax standard applied at each point in the production or distribution process, paid by the final consumer.
Definition of "VAT" as an incremental tax
This definition links "VAT" to its incremental nature, being applied at each stage of the supply chain and passed onto the final consumer.
"VAT" refers to an incremental tax applied at each stage of the supply chain, with businesses adding the tax to the price of the goods or services sold to consumers.
Definition of "VAT" as a tax on the sale of services
This definition connects "VAT" to its application on the sale of services, as well as goods, with businesses collecting the tax from the buyer.
"VAT" means a tax imposed on the sale of both goods and services, with businesses collecting the tax from buyers at the point of sale.
Definition of "VAT" as a tax that is passed to the consumer
This definition ties "VAT" to its characteristic of being passed onto the consumer, who ultimately pays the tax.
"VAT" refers to a tax that is passed onto the consumer, with businesses collecting the tax at the point of sale and remitting it to the government.
Definition of "VAT" as a tax with varying rates
This definition links "VAT" to its characteristic of having different rates, depending on the product or service being sold.
"VAT" means a tax with varying rates, depending on the nature of the product or service being sold, and is collected at each stage of production or distribution.
Definition of "VAT" as a tax for government revenue
This definition applies "VAT" to its primary purpose of generating revenue for government spending on public services.
"VAT" refers to a tax primarily levied to generate government revenue, which is used for funding public services and infrastructure.
Definition of "VAT" as a tax on gross sales
This definition connects "VAT" to its role in taxing gross sales, which is then passed onto the final consumer.
"VAT" means a tax imposed on gross sales, with businesses collecting and remitting the tax to tax authorities on behalf of the government.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.