I'm appalled that Daniel Mitchell doesn't seem to know the difference between a consumption tax and a VAT.
A consumption tax is applied at the sale of the product to the consumer. No place else.
A VAT tax is applied EVERY TIME value is added. Example: iron ore is mined and sold - tax. The iron ore is turned to steel and sold - tax. The steel is forged into a part and sold - tax. The part is combined with other parts to make an assemble and sold - tax. The assembly is combine with other assemblies (say into a car) and sold - tax.
See the BIG difference? Come on Mr. Mitchell, you do your readers a disservice...