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1. How many types of vat?
2. What is the sales tax purpose?

Answer Posted / riyaz ahmed

There are two types of VAT:

Output VAT
Input VAT

OUTPUT VAT is charged by a business and is paid by its customers. (in this case it is, VAT on its output supplies).

INPUT VAT is paid by a business to another businesses on the supplies that it receives (in this case it is, VAT on its input supplies).

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