Question

Charities don't have to charge VAT to customers, which means charity bookshops can charge lower prices than those charged by second-hand bookshops which are not registered as a charity. Charities pay less tax than non-charities.

A. Assumption Made
B. Assumption Not Made
C. Neither Assumption nor Not Made
D. Cannot be determined

Answer 1

Charities do not automatically charge lower prices than non-charity bookshops because they don't charge VAT. The statement about charities paying less tax than non-charities is not a valid assumption in general.

Step-by-step explanation:

The correct answer to the question is B. Assumption Not Made.

The statement in the question is not true. Charities do not automatically charge lower prices than non-charity bookshops because they don't charge VAT. The pricing of products in bookshops, regardless of whether they are run by charities or not, depends on various factors such as the cost of acquiring the books, operational expenses, and profit margins.

While it is true that charities may receive certain tax benefits, it does not imply that they pay less tax than non-charities in all cases. Taxation rules for charities and non-charities vary depending on the jurisdiction and specific circumstances. Therefore, the statement about charities paying less tax than non-charities is not a valid assumption in general.