Tax levied on goods at each stage of their movement from production to the final consumer is known as

A tax levied on goods at each stage of their movement from production to the final consumer is known as a value added tax (VAT). This means that when a good is produced, sold by the manufacturer to the wholesaler, and then sold again by the wholesaler to the retailer, a tax is levied on the value added at each stage of the process. The final consumer then pays the total tax levied on the good. VAT is an indirect tax that is usually a percentage of the price of the good and is collected by the government. It is commonly used by governments to generate revenue and is widely used around the world.