Tax Characteristics
| General Tax on Consumption | Value Added Tax is imposed on all imported and locally produced goods and services, with certain exemptions. |
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| Indirect Tax | The tax is collected from the final consumer. |
| Imposed at Each Stage of Production and Distribution | There is no cumulative effect, since each taxable person has the right to deduct the tax paid on purchases. |
| Self-Control Mechanism Supporting the Tax Administration | The self-control mechanism provided by Value Added Tax contributes to improving income tax collection, noting that this tax is a tax on consumption and not on unspent income or savings. |