Practice Quiz

Veterinary Practice Manager

Category - CVPM

Start a Study Session Sign up for Question of the Day
If VanMeer Veterinary Hospital has purchased a new ultrasound machine through Western Medical, and did not collect the requisite state sales tax because they are located in another state, what type of tax payment is the Veterinary Hospital liable for?
  1. Sales tax
  2. Use tax
  3. Service tax
  4. Major purchase tax
Explanation
Answer: B- The Veterinary Hospital is liable for paying a use tax. Use tax is also known as “compensating” tax. It compensates the state when sales tax should have been collected, but wasn’t.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz