Background information: During the quarter to 30 June 2020 a VAT registered business made the following supplies:

Standard-rated supplies (including VAT) 163,200

Zero-rated supplies 44,000

Exempt supplies 220,000

Input tax in the quarter was 59,000. Of this figure, 35% is attributable to taxable supplies, 40% is attributable to exempt supplies and 25% is unattributed.

Required:

Q1: Calculate the VAT payable to or reclaimable from HMRC for the quarter.

Q2:The owner of the business now asks for an explanation of how VAT will operate if she starts to export goods from the UK. Her customers are based in E.U. countries, Sub-Saharan Africa and Asia.

Write a brief explanation of how the planned export sales will change the VAT return for the business (no calculations required)