Which of the Following Is an Advantage of a Value-Added

Which of the following is an advantage of a value-added tax (VAT) compared to a tax on retail sales?

A) The VAT may lead to higher revenue collected because even if no sales takes place, the government collects tax revenue at earlier stages of production.
B) The VAT is a more equitable tax system because the tax burden is shared by every participant in the production process and by the final consumer.
C) The VAT encourages productive behavior because each producer bears a smaller portion of the total tax imposed on a product.
D) The VAT reduces a nation's trade deficit.