The correct answer is (b). VAT is a value-added tax, which is a type of consumption tax that is levied on the value added to goods and services at each stage of the production and distribution process. The tax is ultimately paid by the consumer, but it is collected by businesses at each stage of the production and distribution process.
Option (a) is incorrect because VAT is not imposed directly on the consumer. The tax is collected by businesses, but it is ultimately paid by the consumer.
Option (c) is incorrect because VAT is not imposed on the first stage of the production. The tax is levied on the value added to goods and services at each stage of the production and distribution process.
Option (d) is incorrect because VAT is not imposed on all stages between production and final sale. The tax is levied on the value added to goods and services at each stage of the production and distribution process, but it is not imposed on all stages.