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 on their purchases 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 (Goods and Services Tax) they have paid on their purchases from the GST they have collected from sales, which is known as an input tax credit. This mechanism prevents the double taxation of goods and services through the supply chain.

Which Statement About Sales Taxes Is Correct