True or false: tax, VAT and GST

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Sales tax is added to the value of the bill.

2. Statement is true

   Yes

   Statement

   Value Added Tax is already included in the price shown.

3. Statement is true

   Yes

   Statement

   GST stands for Goods and Services Tax.

4. Statement is true

   Yes

   Statement

   GST is levied on the supply of goods or services or both.

5. Statement is true

   No

   Statement

   Sales tax is charged on the marked price, not the selling price.

Explanation