Define: Ad Valorem

UK Accounting Glossary

Definition: Ad Valorem

Quick Summary of Ad Valorem

In proportion to the estimated value of the goods or transaction concerned.

What is the dictionary definition of Ad Valorem?

Dictionary Definition

Latin: According To Value

Denotes a tax, duty or commission calculated as a percentage of the total invoice value of goods or services. VAT (Value Added Tax) is an Ad Valorem tax.


Full Definition of Ad Valorem


Examples of Ad Valorem in a sentence

Ad valorem duties are often levied on the basis of a product’s value.
An ad valorem tax is a tax based on the value of real estate or personal property.

Ad Valorem FAQ's

What is an example of an Ad Valorem tax?

An ad valorem tax is a tax that is based on the assessed value of a property, product, or service. The most common ad valorem tax examples include property taxes on real estate, sales tax on consumer goods and Value Added Tax (VAT) on the value added to the final product or service.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Ad Valorem. Payroll & Accounting Heaven Ltd. November 21, 2019
Chicago Manual of Style (CMS):
Ad Valorem. Payroll & Accounting Heaven Ltd. (accessed: November 21, 2019).
American Psychological Association (APA):
Ad Valorem. Retrieved November 21, 2019, from website:

Definition Sources

Definitions for Ad Valorem are sourced/syndicated from:

This glossary post was last updated: 8th April 2019.