Which statement about sales taxes is correct?
A)The consumer is responsible for remitting the tax to the government.
B)Taxes are uniformly applied to all sale transactions.
C)Businesses can deduct the GST paid from GST collected.
D)The same products that are exempt from GST are exempt from PST.

Question

Quizplus · Accepted Answer

Businesses can deduct the GST paid from GST collected. This means that businesses can reduce the amount of GST they owe to the government by subtracting the GST they paid when purchasing goods and services for their own use or for resale. This serves as an incentive for businesses to continue making purchases and generating economic activity.

Which Statement About Sales Taxes Is Correct