TAX FOR LEARNERS III
- A buffet at Sheraton can be likened to buying food anywhere. There is supply when you buy food, and when you buy anything else that is not exempt from VAT. The appropriate tax on the supply of your food at Sheraton, is Value Added Tax (Option C). You knew that, right? :). VAT is also at a flat rate of 5% hence Option B. You also knew that. Right? :p
- You generally will not pay taxes for a boat cruise at Ilashe because you just won’t. Lol. But, you will pay fees to hire the boat so that you and friends can cruise, yes? ;). So Hire fees apply (Option F) and the rate is not fixed. It depends sometimes on the temperament of the person you’re hiring from. Hence Option D!
- Did you know, that Books and Magazines are VAT exempt? Well, they are! And when an item is VAT exempt, it means no rates apply because no VAT applies. There you have it, Options J and A! Ding Ding.
- You know that agreement you signed with the house owner, the one where he short-leased you the lit mansion in Lekki for you and friends to gbe body and do house parties. Yeah, the agreement is subject to stamp duties at an ad valorem (according to value) rate. Options I and H!
- Goods imported into Nigeria are subject to VAT. All exported goods however, are VAT exempt. Options G and E people.
Have you not learned about indirect taxes today?? 😉