Input VAT is:
AVAT charged to customers
BVAT paid on business purchasesCORRECT
CPenalty VAT
DDefault VAT
CITNIndirect Taxation
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Input VAT is paid on purchases used for business and can be set off against output VAT charged on sales.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →
Practice more Indirect Taxation questions
CITN Indirect Taxation has thousands more questions like this — with Worked answers on every one.