The possibility of introducing a value-added tax (VAT) in the United States has been discussed on a sporadic basis for several decades. In this policy brief, which is based on Gale, Gelfond, and Krupkin (2015), we examine issues related to small business and entrepreneurship under a VAT. We also discuss the basic mechanics of a VAT, including the important distinction between goods or businesses that are zero-rated compared to those that are exempt.