With a sales tax, the levy is paid only once, by the retail customer. With VAT, though, each stage of the production process is taxed, from raw materials to the finished product. For example, a ...

This setup means companies don’t really pay the VAT — they just help collect it. But, shoppers don’t get this offset, so they’re the ones who truly pay the tax. Here’s an example of how ...

The VAT began life in the more developed countries of Europe and Latin America but, over the past 25 years, has been adopted by a vast number of developing and transition countries. A recent IMF study ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Lea Uradu, J.D., is a Maryland state registered tax preparer, state-certified notary ...

Admission fees to a national park are another example of direct taxation. Some indirect taxes are also referred to as consumption taxes, such as a value-added tax (VAT). Regressive Nature of an ...

Bloomberg via Getty Images A value-added tax is a type of national percentage ... The White House listed examples of disproportionate taxes, including Germany’s current 10% car import tariff ...

a value-added tax is collected as the product moves through the supply chain. To borrow an example from the Wall Street Journal, say a German bike maker buys steel and aluminum for €50 and sells ...