Question

    In economic terms, what does VAT stand

    for?
    A Variable Added Tax Correct Answer Incorrect Answer
    B Value Added Tax Correct Answer Incorrect Answer
    C Value Adjustable Tax Correct Answer Incorrect Answer
    D Volume Added Tax Correct Answer Incorrect Answer

    Solution

    VAT stands for Value Added Tax. It is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. Ultimately, the consumer bears the cost of VAT, while businesses collect and remit it to the government.

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