What Is a Value Added Tax (VAT)

question 18

Multiple Choice

What is a value added tax (VAT) ?

• A) It is the European version of a sales tax, which is paid by the purchaser based on sales price.
• B) Taxes used in lieu of sales tax and incorporated into the price of a product or service.
• C) The tax paid by a foreign corporation on its fixed assets.
• D) This is the name of the corporate income tax in Canada, Australia, and the United Kingdom.