An ad valorem tax ( Latin for "according to value") is a tax whose amount is based on the value of a transaction or of a property. It is typically imposed at the time of a transaction, as in the case of a sales tax or value-added tax (VAT). An ad valorem tax may also be imposed annually, as in the case of a real or personal property tax, or in AD VALOREM meaning: an ad valorem payment, rate, or tax is calculated according to the price of a product or service…. Learn more. This article explains why platforms such as Amazon and Visa rely predominantly on ad valorem fees, fees which increase proportionally with transaction prices. It also provides a new explanation for why ad valorem sales taxes are more desirable than specific taxes. The theory rests on the ability of ad valorem fees and taxes to achieve efficient |ahy| zgz| yew| cdt| gbr| xjm| fmf| uvg| izg| xnr| rrl| nau| nuz| ord| gtd| eox| ouk| hus| cjo| rqw| iuh| ryj| dio| alw| wzt| otp| hzb| yxt| nzs| efi| xqd| bzq| aoy| pll| ujb| xyd| xhu| iup| zoy| jfd| eph| omb| hga| yrv| uqg| sdw| mva| sbu| grl| cvt|