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What Is a Value Added Tax (VAT)

Question 11

Multiple Choice

What is a value added tax (VAT) ?


A) It is the European version of a sales tax, which is paid by the purchaser based on sales price.
B) Taxes used in lieu of sales tax and incorporated into the price of a product or service.
C) The tax paid by a foreign corporation on its fixed assets.
D) This is the name of the corporate income tax in Canada, Australia, and the United Kingdom.

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