In your own words, explain how a value-added-tax works. Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. Moffett, M. H., Stonehill, A. I., & Eiteman, D. K. (2012). Fundamentals of multinational finance . (IV ed., pp. 389-391). New York: Pearson. .

1. In your own words, explain how a value-added-tax works.
Your response should be at least 200 words in length. All
sources used, including the textbook, must be referenced;
paraphrased and quoted material must have accompanying
citations.
Moffett, M. H., Stonehill, A. I., & Eiteman, D. K. (2012).
Fundamentals of multinational finance
. (IV ed., pp. 389-391). New York: Pearson.