Which of the following is not correct about VAT.
The difference of tax recovered on sale value and paid on purchase is taken as tax.
It is not in addition to existing tax but replacement of sales tax.
VAT is collected by Merchant/Wholeseller/Trader
Value is added at each transfer of goods from the original manufacturer to the retailer.
VAT is collected by Merchant/Wholeseller/Trader
Vat is collected by Government. All points are correct.