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A value-add tax is a tax charged on the gross profit of every step in the supply chain. It’s best understood using an example: The country of Decivat has a 10% value-added tax. A flour manufacturer will buy $1,000 worth of grain from a farmer for $1,100, $100 of which will go to the government as VAT, to create flour. If the manufacturer sells the flour to a baker for $1,500, he will charge $1,550 since a 10% VAT is imposed on the gross profit of $500. _______________________ 0:00 Value Added Tax (VAT) Definition 0:16 VAT Example 0:54 VAT Advantages 1:11 VAT Drawbacks 1:31 VAT Question & Application _______________________ Talk with an advisor by emailing advisor@financestrategists.com Learn more by visiting the page: https://www.financestrategists.com/te... Check out the main Finance Strategists YouTube Page here: / @financestrategists4468 _______________________ Message from the founder: Here at Finance Strategists, we believe one of the best ways you can help someone is with their finances. We create helpful informational videos and content to help people take control of their finances. Finance Strategists plans to launch "Finance Strategists for Kids" where we teach fundamental financial concepts to kids in a clear manner allowing them to generate margin in their lives to bless other people. We believe raising up a generation of leaders with financial freedom can change individual lives, neighborhoods, countries, and the world. _________________________ 🔔 Hit the bell next to Subscribe so you don't miss a video! 📧 Fill out this form to receive the "Finance Word of the Day" in your inbox! 👨🏻💻 Watch our newest vids! - https://bit.ly/FS-Recently-Added 💃 To book Ranie for voiceover or spokeswoman, email info@financestrategists.com _________________________ Follow us on Socials: Website: FinanceStrategists.com Instagram: @financetrategists Twitter: @FinStrategists LinkedIn: https://bit.ly/FS-linkedin Facebook: https://bit.ly/Facebook-FS