Value-added tax

Lower VAT rates reduce the ‘black economy’.  Self-enforcing VAT is 1950s French invention.  Instead of a levy on final sale of a product/ service, it’s imposed at every step of production, with a refund for the tax paid at the previous step.  Each firm reports the VAT the previous firm in the chain should’ve paid, to get credit for it.  VAT rates: Hungary 27% (highest), Canada 5% (lowest).  USA doesn’t have VAT

Guessed the Word?         Series 33 (3/6)         [pic: akshay paatil]