A(n) _____ is collected by a seller at each stage of a transaction.

Question

Quizplus · Accepted Answer

A value added tax, or VAT, is a tax that is collected at each stage of a transaction where value is added. This means that the tax is collected based on the value that is added to a product or service at each step of its production and distribution. For example, if a manufacturer produces a product and sells it to a distributor, the manufacturer would charge a VAT on the sale. The distributor would then charge a VAT on the sale when they sell the product to a retailer, and the retailer would charge a VAT on the sale when they sell the product to a consumer. This tax is commonly used in many countries around the world.

A(n) _____ Is Collected by a Seller at Each Stage