The idea of a value-added tax (VAT) is a foreign concept to most Americans. That puts us in the minority, though: VAT, a multi-layered tax applied at each stage of the manufacturing and marketing process, is used in more than 170 countries —including Canada, Mexico and just about all of Europe.
VAT is applied to most goods and services but if you’re planning on international travel, there’s a good chance you can get a refund on at least some of your VAT payments.
- What is a value-added tax (VAT)?
- Sales tax vs. VAT
- Does the United States have a VAT?
- How to get a VAT refund
- Bottom line
Source: CNBC
