VAT is collected at each stage of the:

**The reasoning** VAT (Value Added Tax) is an indirect tax collected on goods and services at every point where value is added during production and distribution. Think of how a phone reaches you: the manufacturer adds value → pays VAT. The wholesaler adds value (distribution) → pays VAT. The retailer adds value (convenience, display) → pays VAT, which you eventually pay. This chain of collection points is called the **supply chain** — the journey from raw materials to final consumer. At each stage, businesses collect VAT on sales and claim back VAT they paid on purchases, remitting only the difference to government. **Why the wrong options tempt you** - **Salary** seems tax-related, but that's income tax (PAYE), deducted once from earnings, not at multiple stages - **Audit** involves tax examination, but it's not where VAT is collected - **Court** might handle tax disputes, but has nothing to do with the collection process itself **Quick takeaway** VAT follows the product's journey through the **supply chain** — collected bit by bit as value gets added, from factory to your hands.