There are three production stages required before a bicycle produced by MasiBicicletia S.A.can be sold at retail for €3,500.The VAT rate is 15 percent.Find the total tax liability due. $$\begin{array} { c c c }
\text { Production Stage } & \text { Bellirig Price } & \text { Value Added }& \text { Irncrernertal VAT } \
1 & € 1,000& \
2& € 1,750& \
3 & € 3,500&
\end{array}$$

Question

There are three production stages required before a bicycle produced by MasiBicicletia S.A.can be sold at retail for €3,500.The VAT rate is 15 percent.Find the total tax liability due. $$\begin{array} { c c c } 
\text { Production Stage } & \text { Bellirig Price } & \text { Value Added }& \text {  Irncrernertal VAT }  \
1 & € 1,000& \
2& € 1,750& \
3 & € 3,500&
\end{array}$$

Quizplus · Accepted Answer

The total tax liability is calculated by applying the VAT rate to the final retail price: €3,500 * 15% = €525.

There Are Three Production Stages Required Before a Bicycle Produced