Question: A) What is VAT? what is the difference between input and output VAT? B) Samo is a trader who purchases inventory at a cost of

A) What is VAT? what is the difference between input and output VAT? B) Samo is a trader who purchases inventory at a cost of 60,500 (inc. VAT) and incurs the expense of 4,000 (Inc. VAT) and sells the inventory for 85,000 (Excl. VAT). Required: (a) If it standard rate is 20%. How will much the trader pay to HMRC or HMRC will pay for him? (b) If it Zero rate (0\%). How much the trader will pay for HMRC or HMRC will pay to Samo

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