Indirect taxes are levied in the UK but are not levied directly on people or businesses; instead, they are collected by middlemen like suppliers, manufacturers, or retailers. Indirect taxes are typically paid by the final consumer and are included in the cost of goods and services.
TYPES OF VALUE ADDED TAX
Value Added Tax(VAT):
VAT is a tax on goods and services that is collected by businesses on behalf of the government.
Excise Duty:
A tax on some products, including alcohol, tobacco, and fuel, is known as excise duty. The consumer’s price includes the duty, which is imposed on the product’s manufacturer or importer.
Customs Duty:
Imported goods into the UK from outside the European Union are subject to customs duty, which is a tax. The importer is responsible for paying the duty, which is determined by the value of the goods.
Insurance Premium Tax(IPT):
IPT is a tax levied against consumer insurance premiums in the UK. The cost of the insurance policy includes the tax, which is collected by insurance companies.
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