Taxes are compulsory charges without a direct and immediate return service collected by the state from individuals and companies in order to use the collected money to fund public expenditures. When speaking of taxes, it is important to mention that taxes are compulsory charges and that there is no immediate direct return service for the paid taxes. Taxes are most commonly divided into direct and indirect taxes. Direct taxes are taxes paid by a taxpayer personally or by the taxpayer's employer in the name of the taxpayer. Examples of that form of tax are income taxes, which are paid from salaries, royalties or trades, and corporate taxes, which are paid by corporations. On the other side, indirect taxes do not burden the ones who pay them into the state budget. Rather, the tax liability is most often passed on to others. The most well-known form of indirect tax is the value-added tax. Indirect taxes are characterized by elasticity, non-sociality, convenience of payment, abundance, transferability and obligatoriness. Value-added tax is a comprehensive sales tax that is calculated at each stage of the production and sales cycle, but only for the value added at the specific stage, and not for the total production value. VAT is considered to be one of the most desirable tax forms, having, above all, a broad tax base, stable revenues and a simple mechanism for determining and collecting taxes. However, there are also some disadvantages of the value-added tax, and they are manifest in complex rules, especially in tax systems that use different VAT rates and products exempt from VAT.