Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume the rate of VAT is 5 % in Oman. The following transactions are relating to buying and selling of a taxable supply: Manufacturer charges

Assume the rate of VAT is 5% in Oman.
The following transactions are relating to buying and selling of a taxable supply:
Manufacturer charges to wholesaler OMR2,000
Wholesaler charges to retailer OMR 2,800
Retailer price to customer , OMR 3,600
The stated values are exclusive of VAT.
Requirement:
a) Calculate VAT that will be forwarded by the supplier to the government.
b) How much total VAT will be collected by government?
c) How much will be the total tax burden on customer?
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

9th edition

1-119-49356-3, 1119493633, 1119493560, 978-1119493631

More Books

Students also viewed these Accounting questions