vats

4 definitions • 6 examples

a large container used for mixing or storing liquid substances, especially in a factory:

a vat of wine/oil

value added tax (= a type of tax in European countries that is paid by the person who buys goods and services)

a large container for mixing or storing liquids, esp. as used in industry:

The grapes are crushed in deep wooden vats.

abbreviation for Value Added Tax: a tax that is paid at each stage in the production of goods or services, and by the final customer. Businesses in the production process take away the cost of inputs (= labour, materials, etc.) from the cost of outputs (= products and services sold) to calculate the amount that they must pay:

You can pay as little as £600 plus VAT for a powerful PC.

including/excluding VAT The price is £19.99, including VAT.

Those with a turnover of £51,000 or more have to register for VAT.

Banking services are exempt from VAT.