Value-added tax

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/value-added-tax

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the originating country and year?France, 1954, by Maurice Lauré
2. What is Value-added tax (VAT)?VAT is a small tax added to most things you buy, like toys, food, and clothes. It helps pay for things we all use, such as parks, schools, and hospitals.
3. How does VAT work when I buy something?When a business sells something, it adds VAT to the price. The business can later get back the VAT it paid on the parts it bought, so the final price the customer pays includes the tax.

Input Tax Credit: The ability for businesses to deduct VAT paid on their purchases from VAT collected on their sales.
Destination Principle: The principle that taxes should be levied in the country where goods and services are consumed.
Regressive Tax: A tax that takes a larger percentage of income from lower-income earners than from higher-income earners.