You file with a one page report, monthly, quarterly or annually depending on business level. You keep your records for an audit just in case, but you would do this anyway. Your usual business records (receipts etc) all contain the tax info, so there is no extra burden.
The claimed advantage of such a system over a strictly retail tax is that it captures economic activity that does not make it to the retail level (such as production machinery) thus distributing the tax throughout the economy more fairly. Of course, business has to pass this onto the final consumer anyway.
I am not promoting such a system, just clarifying a previous poster that suggested that producer level taxes would be multiplied.
You tax activities you don't like. I'm not clear that taxing consumption wouldn't create an initial drop in consumer activity. However, I would suggest that eliminating the complexity of the tax code would free society tremendously. Of course, it would create a depressing in the law/accountancy sector. After Enron, maybe that's a good thing for the big firms to take a hit, but many decent lower-level CA's would also be affected.