Sales taxes are subject to input tax credits while value-added (VAT) taxes are not.

Name: Sales taxes are subject to input tax credits while value-added (VAT) taxes are not.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Sales taxes are levied on the final consumer, while VAT is levied on businesses at each stage of the production and distribution process. Input tax credits allow businesses to deduct the VAT they have paid on their purchases from the VAT they owe on their sales.

Sales Taxes Are Subject to Input Tax Credits While Value-Added