
There is no need to include the VAT from previous levels because
the VAT is a "difference" tax...if the VAT is X%, than the amount
of tax the government receives through all the levels is X% of
the purchase price of the end consumer.  At the intervening levels,
only the difference between the VAT paid out and the VAT received
is remitted to the government.


A VAT is infinitely preferable to a retail sails tax...