When a tax is levied as a percentage of the total amount spent in retail stores, this tax is called a:
A)value-added tax
B)retail tax
C)commercial tax
D)sales tax

Question

Quizplus · Accepted Answer

A tax levied as a percentage of the total amount spent in retail stores is commonly known as a sales tax. Value-added tax (A) is a type of tax where the tax is levied on the value added at each stage of production and distribution of a good or service. Retail tax (B) and commercial tax (C) are not commonly used terms in taxation.

When a Tax Is Levied as a Percentage of the Total