UK Accounting Glossary
In proportion to the estimated value of the goods or transaction concerned.
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.
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.
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.
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This glossary post was last updated: 8th April 2019.