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b) A retailer sells a product whose listed price is RO 5,000 and charges VAT (Value Added Tax) on it at the prescribed rate of
b) A retailer sells a product whose listed price is RO 5,000 and charges VAT (Value Added Tax) on it at the prescribed rate of 15% from the customer. If the retailer pays a VAT of RO 75 to the government, what was the price inclusive of tax at which the retailer bought the article from the wholesaler? If the wholesaler pays a VAT of RO 50 to the government, what was the price inclusive of tax at which the wholesaler bought the article from the manufacturer? How much does the government received as VAT? (6 marks)
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