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NEW QUESTION: 1
A value-added tax is collected on the basis of:
A. The difference between the value of an entity's sales and the value of its purchases from other domestic entities.
B. The value of an entity's sales to related companies.
C. The difference between the selling price of a real estate property and the amount the entity originally paid for it.
D. The profit earned on an entity's sales.
Answer: A
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
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NEW QUESTION: 3
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