VAT in Nigeria is a:
ACascading tax
BMulti-stage non-cumulative tax (input-output mechanism)CORRECT
COne-stage tax
DAnnual tax
CITNIndirect Taxation
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Why the answer is B, and why the others tempt you.
VAT is multi-stage but non-cumulative — only the value added at each stage is effectively taxed via input-output offset.
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