What is the consequence of the purchases of a OPT-taxpayer from a VAT taxpayer?
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 49P
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Question
What is the consequence of the purchases of a OPT-taxpayer from a VAT taxpayer?
Options:
i. The transaction shall be subject to VAT, the amount of which forming part to the cost of the purchase.
ii. The transaction shall be subject to VAT, the amount of which can be used as an input tax credit.
iii. The transaction shall be subject to zero-rated VAT since the buyer is not subject to VAT.
iv. The transaction shall not be subject to value-added tax since he is not VAT registered.
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