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.
In other words, it is the difference between total output tax and total input tax. Here input tax refers to a tax on inputs, i.e. local purchases made from a registered dealer whereas output tax means a tax on outputs i.e. tax on sales made within the state. VAT is an acronym used for Value Added Tax.