Day: September 2, 2019

Value Added Tax . . .

Select ONE answer:

1. is paid by the purchaser of goods and services, at the relevant rate, on the value added to them by their seller.
2. is collected by the HMRC on behalf of the government as value is added to goods and services.
3. is charged at the relevant rate by the sellers of goods and services on the value added by them.
4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Incorrect – A VAT is paid by the purchaser of goods and services on the full price, excluding VAT, of those goods and services.
2. Correct
3. Incorrect – VAT is charged by vendors of goods and services on the full price, excluding VAT, of those goods and services.
4. Incorrect

 

This work is licensed under a Creative Commons Attribution 4.0 International License.