Value-added tax (VAT)
A consumption tax collected at each stage of production, shown in the price.
Value-added tax (VAT), called GST in some countries, is a consumption tax applied to the value added at each stage of a product's supply chain and ultimately borne by the final consumer. To add VAT, multiply the net price by one plus the rate (e.g. ×1.20 for 20%); to remove it from a VAT-inclusive total, divide by one plus the rate. Rates and exemptions vary widely by country and product.