Question

When is VAT added to a product’s price?

Question 19 options:

At the last stage of production


At the point of sale


At every stage of production


At the first stage of production

Answer 1

VAT added to the products price at the stage of sale.

Answer: Option B

Step-by-step explanation:

VAT stands for value added tax. VAT system is like a GST. The VAT has to be paid by the consumer or a business concern must pay the cost of goods and services and has to be subtracted material cost of previous year if any.

At the exact and each time value is added when a sale is made. Each and every seller in the production chain as to be charges VAT tax to the buyer, which it's remitted to the government.