The value-added tax, collected through the invoice method, exempts intermediate purchases from taxation.

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The value-added tax (VAT), collected through the invoice method, exempts intermediate purchases from taxation. This means that businesses can deduct the VAT they paid on their own inputs (materials, services, etc.) from the VAT they collected on their sales before remitting the difference to the government, resulting in only the value they added to the product or service being taxed. This avoids double taxation and promotes efficiency in the supply chain.

The Value-Added Tax, Collected Through the Invoice Method, Exempts Intermediate