Indirect Tax Article Index for
Indirect
Website Links For
Tax
 

Information About

Indirect Tax




In the colloquial sense, an indirect tax (such as Sales Tax , Value Added Tax (VAT), or Goods And Services Tax (GST)) is a Tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the customer). The intermediary later files a tax return and forwards the tax proceeds to Government with the return. In this sense, the term indirect tax is contrasted with a direct tax which is collected directly by government from the persons (legal or natural) on which it is imposed.

The term indirect tax has a different meaning for U.S. constitutional law purposes. See Direct Tax ; see also Excise .