The Invoice Method of Collecting the Value-Added Tax

question 13

Multiple Choice

The invoice method of collecting the value-added tax:

• A)requires firms to compute value added.
• B)taxes a firm's sales at a fixed rate but allows a credit for taxes paid on purchases of intermediate goods.
• C)requires firms to pay a fixed rate of taxation on both sales and purchases.
• D)taxes only intermediate purchases at a fixed rate.

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Definitions:

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The sensory experience caused by food or other substances on the taste buds of the tongue.