in the cumulative multi-stage tax system tax is levied on the gross turnover in each stage of production and distribution or the provision of services (cf. "multi-stage non-cumulative value added tax")
The first step was initiated already in 1967 by replacing all cumulative multi-stage taxes which Member States had applied until then by a multi-stage non-cumulative value added tax.
... it has become clear that such harmonisation must result in the abolition of cumulative multi-stage taxes and in the adoption by all Member States of a common system of value added tax ...
