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A general tax which applies at each point of exchange of goods and service is?

A general tax which applies at each point of exchange of goods and service is?

A.
a specific tax
B.
an ad valorem tax
C.
value added tax
D.
direct tax

Correct Answer: Option C

Explanation

value added tax is a tax on the amount by which the value of an article has been increased at each stage of its production or distribution. A value–added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.