Value-added tax (VAT) is an indirect national tax levied on the value added in the production of a good or service. It is typically included in the price of a product or service and collected at each stage of production or distribution. It is not a direct tax on personal or corporate income or passive income earned in one country by an individual or corporation in another country.

Solved

Value-Added Tax Is

Question 25

Multiple Choice

Value-added tax is:

A) a tax levied on passive income earned by an individual or corporation of one country within the jurisdiction of another country.
B) a direct tax on personal and corporate income.
C) an indirect national tax levied on the value added in the production of a good or service.
D) an indirect national tax levied on personal and corporate income.

Correct Answer: