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Virtual Reality (VR)
Virtual reality (VR) is a simulated experience that can be similar to or completely different from the real world.
A person using Virtual Reality equipment is able to look around the artificial world, move around in it, and interact with virtual features or items.
Example: SIEMENS VR Showroom

Augmented Reality vs. Virtual Reality

Augmented Reality (AR) differs from Virtual Reality (VR) in the sense that in AR part of the surrounding environment is actually 'real' and just adding layers of virtual objects to the real environment. On the other hand, in VR the surrounding environment is completely virtual.
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Augmented Reality vs. Virtual Reality