A trader sells goods for ₦1,075,000 VAT-inclusive at 7.5%. The VAT element is:
A₦80,625
B₦75,000CORRECT
C₦75,500
D₦70,000
CITNIndirect Taxation
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Why the answer is B, and why the others tempt you.
VAT element = (7.5/107.5) × 1,075,000 = ₦75,000. Net amount = ₦1,000,000.
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