A(n)_____ is an indirect tax imposed on each sale at each stage of production.

Question

Quizplus · Accepted Answer

A value-added tax (VAT) is an indirect tax that is levied on each stage of production or distribution, up to and including the final sale. This tax is based on the value added to a product or service at each stage of production or distribution, rather than being based on the final price or sale price. This means that the tax is imposed at each step along the production and distribution chain, from the raw materials supplier to the manufacturer, wholesaler and retailer, and ultimately to the end consumer.

A(n)_____ Is an Indirect Tax Imposed on Each Sale at Each