From Statistics Explained
The output approach to calculate GDP sums the gross value added of various sectors, plus taxes and less subsidies on products.
The output of the economy is measured using gross value added. Gross value added is defined as the value of all newly generated goods and services less the value of all goods and services consumed in their creation; the depreciation of fixed assets is not included.
When calculating value added, output is valued at basic prices and intermediate consumption at purchasers' prices. Taxes less subsidies on products have to be added to value added to obtain GDP at market prices.
- Gross domestic product (CODED - Concepts and Definitions Database)