Strictly speaking, we are talking about value added at constant prices or the quantity of value added.
The sum of gross value added, at purchasers' prices, by all resident and non-resident producers in the economy, plus any taxes and minus any subsidies not included in the value of the products in a country or a geographic region for a given period of time, normally 1 year.
Thus, effective protection in one country may be much higher than that in another even though its nominal tariffs are lower, if it tends to import commodities of a high level of fabrication with correspondingly low ratios of value added to product price.
Hospital prices were analyzed as net prices, i.e. excluding the value added tax, and as "unit prices" (i.e. per tablet, vial) to allow for a comparison in case of different pack sizes (e.g. 28 and 30 tablets).
This competition, and the lack of any sort of national value added tax (VAT,) kept prices for most things in America among the lowest in the world.
The effective rate of protection also depends on the share of value added in the product price.
Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc, then offer premium priced value added services or an enhanced version of your service to your customer base.
The Spanish pharmaceutical drug catalog for 2008 was used to obtain the unit price of drugs, where cost was estimated as retail price plus value added tax of the cheapest generic medication available, or cheapest pharmaceutical medicinal product when a generic medication or reference price was unavailable.
The underlying assumption of the price model is that changes in value added lead to changes in relative prices of goods and services but the quantities of goods demanded remain constant.
The report suggests that retailers should tailor discount seasons based on festivals of different regions, offer best prices and value added services (happy hours on shopping deals, offers for retirees, contests for students, for example), among other things.
There's some debate as to whether this would include VAT or not, the European value added tax on the purchase prices of some goods, is included in those figures.
