To say a value added tax (VAT) is a more knotty edition of a sales tax. In US most states insist on a sales tax on wares and services. For e.g. if there is a 10% sales tax to buy a $100 article You have to pay $110. As the name suggests, the tax is to be calculated from the amount of value that is a specified portion of the "circulation chain" which is added to your cost.
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