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Value Added

Economics Markets and Financial TheoryUpdated 05 Nov 2026

Value added is the value a firm or industry creates: the value of its output minus the cost of the materials, energy and services it buys from others. Added up across the economy it gives gross value added (GVA), explained in full on that page, which with taxes on products makes up GDP.

A value added tax charges each stage of the supply chain on the value it adds; see sales tax. Value added per worker is a measure of productivity.

Last updated 05 Nov 2026