A value-added tax (VAT) is __________ national tax levied on the value added in the production of a good (or service) as it moves through the various stages of production.

Question

Quizplus · Accepted Answer

A value-added tax (VAT) is an indirect tax as it is ultimately paid by the consumer as a part of the price of the good or service. Direct taxes, on the other hand, are levied directly on individuals or companies, such as income tax or property tax. A sales tax is also an indirect tax, but it is usually applied only at the final stage of production, whereas VAT is applied at each stage of production. Therefore, option B is the correct answer.

A Value-Added Tax (VAT) Is __________ National Tax Levied on the Value