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A value-added tax is collected on the basis of:
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D. The difference between the value of an entity's sales and the value of its purchases from other domestic entities.
Answer: D
Explanation:
A value-added tax is similar to a retail sales tax on consumer goods. It is applied to the difference between the value of an entity's sales and the value of its purchases from other entities, that is. to the value added to the input In effect, a value-added tax is a national tax that penalizes consumption.
NEW QUESTION: 2
A. Option B
B. Option D
C. Option C
D. Option A
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