A value added tax (VAT) is a
form of consumption tax. A VAT is like a sales
tax in that ultimately only the end consumer is
taxed. It differs from the sales tax in that, with
the latter, the tax is collected and remitted to the
government only once, at the point of purchase
by the end consumer. VAT comes under the
single tax system based primarily or exclusively
on one tax, typically chosen for its special
properties.
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