Question

How can VAT reduce tax evasion?​

Answer 1

Answer:

Everyone has to keep proper records and ask for bills for purchase. It is only on this basis they can show the tax already paid on cost of inputs. The tax inspector will be able to match records of the seller and purchaser for verification. These records and verifications in VAT reduce the evasion of taxes on goods.

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Answer 2

Answer:

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The tax inspector will be able to match records of the seller and purchaser for verification. These records and verifications in VAT reduce the evasion of taxes on goods.