36 ll 30.ll 6 O RO 58% D 9:38Q4. Mr. Assad a Wholesaler buys aproductfromtheAlMazoonmanufacturing company at RO 700 andpays VAT at the prescribed rate of 10%. aretailer buys a product from the wholesalerat RO 800 and the wholesaler charges VATat the prescribed rate of 10%. The retailerfixes the price at RO 1000 and chargesVATthe same rate.Mr. Yousuf buys the product from the ABCLLC.a) What is the price including VATthat Mr. Yousuf has to pay to buythe Product?b) What is input tax and output tax?Discussc) Amount of output tax for theretailer and wholesaler.d) How much VAT does the retailerpay to the government?e) VAT is different from sales taxsystem. Explain and give reason toyour answer

VAT: VAT ( Value added tax) is also called consumption tax, where tax is levied on every stage of…

Answered: a) What is the price including VAT that…

a) What is the price including VAT that Mr. Yousuf has to pay to buy the Product? b) What is input tax and output tax? Discuss c) Amount of output tax for the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

36 ll 30.ll 6 O R
O 58% D 9:38
Q4. Mr. Assad a Wholesaler buys a
product
from
the
Al
Mazoon
manufacturing company at RO 700 and
pays VAT at the prescribed rate of 10%. a
retailer buys a product from the wholesaler
at RO 800 and the wholesaler charges VAT
at the prescribed rate of 10%. The retailer
fixes the price at RO 1000 and charges
VAT
the same rate.
Mr. Yousuf buys the product from the ABC
LLC.
a) What is the price including VAT
that Mr. Yousuf has to pay to buy
the Product?
b) What is input tax and output tax?
Discuss
c) Amount of output tax for the
retailer and wholesaler.
d) How much VAT does the retailer
pay to the government?
e) VAT is different from sales tax
system. Explain and give reason to
your answer

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