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Vat Meaning: Definition, Examples, and Translations

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vat

[væt ]

Definitions

Context #1 | Noun

tax

A tax levied on the sale of goods and services, ultimately paid by the consumer.

Synonyms

sales tax, value-added tax.

Which Synonym Should You Choose?

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Word Description / Examples
vat

An acronym for value-added tax, used in the same contexts as 'value-added tax' and often in formal or business communications.

  • The invoice includes VAT at the standard rate
  • Small businesses must register for VAT if their turnover exceeds a certain threshold
value-added tax

A type of tax that is applied incrementally at each stage of production or distribution of goods and services. Common in many European countries.

  • The value-added tax on this product is 20%
  • Companies can often reclaim the value-added tax that they have paid on business expenses
sales tax

A tax on sales or on the receipts from sales, typically added to the price of goods and services at the point of sale. Common in many countries.

  • The price of the shirt was $20, but with sales tax, it came to $21
  • 50
  • Different states have different sales tax rates

Examples of usage

  • The price of the product includes VAT.
  • VAT is added at the checkout.
Context #2 | Noun

abbreviation

Value Added Tax.

Examples of usage

  • The receipt shows the total amount including VAT.
  • VAT is calculated at 20%.
Context #3 | Noun

Europe

A type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale.

Examples of usage

  • In many European countries, VAT rates vary for different products.
  • Businesses need to register for VAT to collect and pay it to the government.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Industry

  • In brewing, vats are essential for fermentation, where yeast transforms sugars into alcohol.
  • They are also widely used in the textile industry to dye fabrics, allowing large quantities to be dyed evenly.
  • Vats designed for chemical processes are built to withstand corrosive substances and high temperatures.

Science

  • In biology, large vats can be used for culturing microorganisms for research and development.
  • Vats are crucial in waste management, where effluents from factories are collected and treated.
  • Aquaculture sometimes uses large vats to raise fish in controlled environments, enhancing growth and health.

Cultural References

  • Vats have appeared in literature, such as in stories describing ancient brewing techniques.
  • Movies often depict vats in scenes of transformation, like in fantasy where magical potions are brewed.
  • In contemporary art, some artists use large vats as part of interactive installations, engaging viewers with the material.

Food and Beverage

  • Large vats are used in food production for items like yogurt and sauces, ensuring quality and consistency.
  • In cheese-making, vats allow curds to form before they are processed into different cheese varieties.
  • During festivals, some cultures use massive vats to prepare traditional dishes for large gatherings.

Origin of 'vat'

Main points about word origin

  • The word 'vat' comes from Old Norse 'vÇ«ttr', which meant a container or vessel.
  • Related to the German word 'Fass', meaning barrel, showing similar uses across languages.
  • The term has been used in English since the 14th century, often referring to a large barrel.

The term 'VAT' stands for Value Added Tax and was first introduced in France in the 1950s. The concept of VAT has since been adopted by many countries around the world as a way to tax consumption. VAT is considered a more efficient and equitable way of taxation compared to traditional sales taxes.