Added value is a concept used in economics to measure the economic contribution of a certain entity or sector in the production process. Today, its taxation is the rule, not the exception. In most tax systems, value added tax occupies a special place because the revenues collected by the state are by far the most generous. It is usually calculated as a percentage of the price of the product or service and is added to the final price paid by the end consumer. This is achieved according to the principle according to which value added tax is levied at each stage of production and distribution on the difference between the amount of value added tax that was collected when selling the product and the amount of value added tax that was paid when purchasing the raw materials, materials and services required for the production of these products. In this way, the value added tax is transferred through different stages of economic and economic chains, where it is paid only on the added value that each stage contributes. On the other hand, with value added tax, there is a deduction system, which represents the process of deducting value added tax when selling a product or service that was paid for by purchasing raw materials, materials and services necessary for the production of the aforementioned products or services. Value added tax is an important source of revenue for the state budget and is used to finance public services and infrastructure. It is paid for all commercial deliveries of goods and services, except for those for which tax exemptions are specifically prescribed, and it is paid at the rate determined by the law of the country in which it is applied and may vary based on that.