What kind of tax is the IVA?
¿Qué clase de impuesto es el IVA?
- ADirecto sobre la rentaDirect tax on income
- BIndirectoIndirect
- CSobre los beneficios de las empresasOn company profits
Show answer and explanation
✓ Indirecto
The IVA, the impuesto sobre el valor añadido (value added tax), is an indirect tax: you pay it when you buy goods and services, and the company collects it. Direct taxes, such as the IRPF, tax people's income directly, and corporate tax taxes company profits. The IVA rates are 21%, 10% and 4%, depending on the product.
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Original practice question on a public fact, not from the official bank. For the official bank: Official CCSE manual (PDF).