Multiple choice

VAT is imposed�

  1. Directly on consumer

  2. On final stage of production

  3. On first stage of production

  4. On all stages between production and final sale
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

VAT (Value Added Tax) is a multi-stage tax imposed on all stages between production and final sale. Unlike a single-point sales tax, VAT is levied at each stage of the supply chain where value is added, with provisions for input tax credit to avoid cascading effect.

Keep practicing — related questions