VAT and Sales Tax Quiz

4 multiple-choice questions with answers and explanations · 1 easy, 3 medium

Sales tax and VAT collected from customers: the journal entry, extracting tax from a tax-inclusive price, and the net amount payable.

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  1. 1Sales Tax and VAT: Is Tax Collected from Customers Revenue?Sales tax (or VAT) that a business collects from its customers is:easy
  2. 2Sales Tax Journal Entry: Recording a Cash Sale with TaxGoods priced at $2,000 are sold for cash, plus 10% sales tax. Which entry is correct?medium
  3. 3VAT: Extracting the Tax from a Tax-Inclusive PriceA price of $600 includes VAT at 20%. How much of the $600 is VAT?medium
  4. 4VAT: Net Amount Payable to the Tax AuthorityIn a quarter, a business charges output VAT of $9,000 on its sales and pays input VAT of $5,500 on its purchases. Its position with the tax authority is:medium

Practise vat and sales tax with full problems

VAT / Sales Tax challenges 1

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