indirect tax
Quick Summary
An indirect tax is levied on the production or consumption of goods and services, or on transactions like imports and exports. Unlike direct taxes, such as income tax, indirect taxes can typically be shifted from the taxpayer to someone else.123
Common examples of indirect taxes include:
* Sales taxes: Applied to a broad range of consumer expenditures.1
* Value-added taxes (VAT): Collected by allowing a credit for tax paid on purchases against tax liability on sales.1
* Excises: Levied on specific commodities or services, often including alcoholic beverages, tobacco, and motor fuel.1
* Customs duties: Taxes on imported goods.1
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