Indirect Tax


  • A type of tax that passes through an intermediary before being paid to the government. Unlike direct taxes such as income and property taxes, indirect taxes are collected by a third party before being transferred to the government. A sales tax is an example of an indirect tax because the tax is collected by the seller at the point of sale and transferred to the government at a later date.

Alternate Spellings
sales tax

Related Terms and Acronyms

  • Direct Tax Definition,
    • A tax that is paid straight to the government.
  • Goods and Services Tax (GS, GST) Acronym, Canada,
    • A sales tax that applies in all Canadian provinces charged at 5% (as of 2012).
    Bank account transaction code.
  • Harmonized Sales Tax (HST) Acronym, Canada,
    • A sales tax used in some provinces to merge the GST and PST.
    Canadian consumption tax.
  • Levy Definition,
    • A cost imposed on an individual or entity.
  • Provincial Sales Tax (PST) Acronym, Canada,
    • A sales tax collected by some Canadian provinces.
  • Sales Tax Definition,
    • Federal and / or provincial taxes that are applied to purchases.
  • Tax (TX) Acronym,
    • A levy paid by an individual or entity that is collected by a government.
    Bank account transaction code.
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