Question

Which tax is paid to a third party?

Direct
Flat
Income
Indirect

Answer 1

The tax that is paid to a third party is referred to as **indirect tax**. Indirect taxes are not paid directly by the taxpayer to the government but are instead collected by an intermediary (such as a retailer) from the consumer when they purchase goods or services. Examples of indirect taxes include sales tax and value-added tax (VAT).