What Is Value Added Tax (VAT)?

Matthew Retzloff

Reviewed by

Matthew Retzloff WSO Editorial Board

Expertise: Investment Banking | Other

VAT, or Value Added Tax, is a form of taxation applying to all products in an economy. The tax is applied whenever any value is added to a product, hence the name. An example of VAT is:

  • A technology company buys components for a stereo from suppliers, paying VAT on each component.
  • The consumer buying the stereo as a finished product pays VAT on it.

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Matthew Retzloff

Matthew Retzloff is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. Matthew started his finance career working as an investment banking analyst for Falcon Capital Partners. Matthew then started in a role in corporate development at Babcock & Wilcox before moving to a corporate development associate role with Caesars Entertainment Corporation where he currently is. Matthew provides support to Caesars' M&A processes including evaluating inbound teasers/CIMs to identify possible acquisition targets, due diligence, constructing financial models, corporate valuation, and interacting with potential acquisition targets. Matthew has a BS/BA from UNC. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.