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wizzwizz405/04/20251 replyview on HN

The third sentence of the Wikipedia article begs to differ. https://en.wikipedia.org/w/index.php?title=Value-added_tax&o...

> A value-added tax (VAT or goods and services tax (GST), general consumption tax (GCT)) is a consumption tax that is levied on the value added at each stage of a product's production and distribution. […] VAT is an indirect tax, because the consumer who ultimately bears the burden of the tax is not the entity that pays it.

(Even then, Wikipedia is oversimplifying: "ultimately bears the burden" isn't how economies work.)


Replies

snkzxbs05/04/2025

What that means is that you don’t pay VAT directly to the government, the business collects it from you and is responsible for giving the money to the government. But yes, the burden is on the end consumer.

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