Indirect taxes are charged on goods and services, not on income or profits. These taxes are collected by businesses, such as retailers or producers, who then pass the payments to the government.

These must be classified correctly to calculate gross profit and net income. Knowing how to allocate indirect and direct expenses can help you price services or products competitively and profitably.

since the person earning the income is the one directly paying the tax. Admission fees to a national park are another example of direct taxation. Some indirect taxes are also referred to as ...