A(n) ____________ tax is a tax on increased value of a product at each stage of production and distribution rather than just at the point of sale.

Question

Quizplus · Accepted Answer

A value-added tax (VAT) is a tax on the value added at each stage of production of a good or service, rather than just at the point of sale. It is a consumption tax that is applied to the difference between the price of a good or service at each stage of production and the cost of inputs used to produce it. It is a common tax system in many countries, including most of Europe, and is seen as a way to generate revenue for governments while promoting economic growth.

A(n) ____________ Tax Is a Tax on Increased Value of a Product