Introduction to VAT Value-added tax, commonly referred to as VAT, is one of the most significant consumption-based tax systems in the world. Unlike income tax, which targets earnings, VAT focuses on spending. It is applied at different stages in the production and distribution process, whenever value is added to a product or service. By the … Continue reading Value-Added Tax (VAT) Explained: Global History, How It Works, Pros & Cons, and Country Rates