The tax on the value of a product at each stage of production and distribution is called the __________.
A)excise tax
B)production tax
C)total tax
D)value-added tax

Question

Quizplus · Accepted Answer

A value-added tax (VAT) is a consumption tax that is assessed on the value added to goods and services at each stage of production and distribution. It is sometimes also referred to as a goods and services tax (GST). The tax is calculated based on the difference between the cost of inputs and the sales price of the final product. The goal of a VAT is to ensure that the tax burden is spread out across the entire supply chain, rather than just being imposed on the consumer at the final point of sale.

The Tax on the Value of a Product at Each