Value-added tax

Value-Added Tax (VAT) is a kind of tax like other taxes like income taxes. It's a tax that is added to the price of products and services that we buy. It's added by businesses (like stores, restaurants, etc.) when they sell something and it's paid by the person buying the product or service. The money collected from the tax goes to the government and is used to pay for public services like schools, roads, and other services. It's good because it means that everybody helps pay for the services that make our lives easier.