Question

When is VAT added to a product’s price?

At the point of sale

At the last stage of production

At the first stage of production

At every stage of production

Answer 1

The answer is D) at every stage of production.

Answer 2

The correct answer is D, At every stage of production.

Step-by-step explanation:

VAT is an abbreviation of Value Added Tax. Value Added tax is the tax which is added at every stage of production. Tax price is added to the product at every stage of its production. As soon as the materials are added to the product, the value of the product increases and the tax on that material is added to the price of the product. Thus at every point or stage of production, value of the product increases and the tax is added which is the value added tax.