Fortification. 1  a broad elevation or mound of earth raised as a fortification around a place and usually capped with a stone or earth parapet. 2  such an elevation together with the parapet.
A value-added tax (VAT) is a consumption tax levied on products at every point of sale where value has been added, starting from raw materials and going all the way to final retail purchase by a consumer. Ultimately, the consumer pays VAT; buyers earlier in the chain of production receive reimbursements for previous VAT taxes paid.
Sales tax is a direct tax that is levied on a the price of a finished product, or service, and imposed on a buyer. Mechanism. VAT is calculated by subtracting the cost of output from the value of output. This can be written as: VAT = Value of Output -- Cost of Output.