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John Moffat.
John Moffat.-
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nabintiwari
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how are the retailers benifited when they don’t give us vat bill? Do we have to pay extra when we ask for vat bill? For example, if we are buying something in dollar 120 and if we ask for vat bill, vat being 20 percent, does it mean sales of 100 and vat of 20 or sales of 120 and vat of 24? Should we pay 120 or 144?
John Moffat
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Retailers do not benefit by not giving a VAT bill (unless they are cheating). Whether or not there is a VAT bill then they should be charging VAT and paying it to the state.
If the price is quoted as a net price, then the amount you pay is the net price plus sales tax.
If the price is quoted as a gross price (which it is in retailers selling to the public) then that is the amount you pay and it includes sales tax.
I do suggest that you watch my free lectures on sales tax where all of this is explained.
(Our lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.)
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