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Recovering sales tax from purchases

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Recovering sales tax from purchases

  • This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 14, 2019 at 9:17 pm #509355
    kingkongsajang
    Member
    • Topics: 95
    • Replies: 75
    • ☆☆

    Could you help me understand exactly the logic behind why businesses that become customers of other business and purchase from them (so incurs the sales tax in the price paid) can get the sales tax they paid recovered?

    I get the sales as they are the agent and it’s not there’s to keep.

    Thank you.

    March 15, 2019 at 8:33 am #509382
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54776
    • ☆☆☆☆☆

    Because if that didn’t happen, tax would be being charged twice.

    I explain exactly why this is happening in the first of my free lectures on sales tax.

    March 16, 2019 at 6:12 pm #509487
    kingkongsajang
    Member
    • Topics: 95
    • Replies: 75
    • ☆☆

    okay thank you

    March 17, 2019 at 2:20 pm #509532
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54776
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Recovering sales tax from purchases’ is closed to new replies.

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