A jewelry manufacturer domiciled in Amsterdam purchases gold from a precious metals dealer in Belgium for 2,400.

Question:

A jewelry manufacturer domiciled in Amsterdam purchases gold from a precious metals in Belgium for €2,400. The manufacturer fabricates the raw material into an item of jewelry and wholesales it to a Dutch retailer for €4,000.

Required:
Compute the value-added tax from the jewelry manufacturer’s activities if the Dutch value-added tax rate is 17.5 percent.

Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...