[expat_panama]

Instead of hiding taxes in the cost of a product, or as withholdings from your paycheck, you pay it at the point of purchase...

Are you saying that this is only an end product tax and that producers are exempt from the tax?

[baybabe]

That’s correct - there is no business to business transaction tax as there is in a VAT. Only end consumer purchases are taxed - and not even all of those. Nor is there any tax cascading as a result.