Charging VAT on the sales of goods and services increases the total invoice amount but does not increase income.

Name: Charging VAT on the sales of goods and services increases the total invoice amount but does not increase income.
Brand: Quizplus
Rating: 4.8 (49 reviews)

Question

Quizplus · Accepted Answer

VAT (Value Added Tax) is collected on behalf of the government, so while it increases the total amount charged to the customer, it does not increase the income of the business since the collected VAT must be remitted to the government.

Charging VAT on the Sales of Goods and Services Increases