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What is VAT?

What is VAT? Here are some definitions.

Noun
  1. (taxation) Initialism of value added tax.
  2. Initialism of Vigilance awareness training.
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Examples
They want to know my outgoings, my fixed costs, my capital outlay, my VAT number, my date of incorporation.
Government taxes on fuel, excluding VAT, accounted for over 1.8bn collected in 2004 with just over half this figure derived from taxes on petrol.
Please note that most of the VAT amendments have come into operation on 1 October.
The airline industry is unique in the transport sector in that it pays no VAT and its fuel remains untaxed.
Why is there no VAT on designer-label shoes worn by the children of the rich?
It is also bound to highlight the differences in prices caused by the different rates of VAT and excise duty on different goods.

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