What are consumption taxes?
Consumption taxes are applied to the purchase of goods and services. There are different kinds of consumption taxes, depending on the country. They can be a flat rate applied to every transaction, or a percentage of the total value. Each type requires something different from you, the business owner.
But one element always stays the same. The end customer pays the tax, because they are who’s actually consuming the end product. And it’s a tax on consumption. On buying and spending for one’s own personal use.
Source Quaderno