Question

When is VAT added to a product’s price?

Question 38 options:

At the last stage of production


At every stage of production


At the point of sale


At the first stage of production

Answer 1

Answer: B.) At every stage of production

Explanation:

A value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed.