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- Dictionaryindirect tax
noun
- 1. a tax levied on goods and services rather than on income or profits.
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noun
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An indirect tax is a tax that is levied upon goods and services before they reach the customer who ultimately pays the indirect tax as a part of market price of the good or service purchased. Alternatively, if the entity who pays taxes to the tax collecting authority does not suffer a corresponding reduction in income, i.e., the effect and tax incidence are not on the same entity meaning that tax ... Wikipedia