Value Added Tax is paid by the buyer and the seller only.

True

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False

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Solution

The correct option is B
False

Value Added Tax: a tax on the amount by which the value of an article has been increased at each stage of its production or distribution. It is an indirect tax on the domestic consumption of goods and services, except for those that are zero-rated such as food. It is given by each entity right from the manufacturer to the buyer.

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