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Mohammad is a sole trader and is registered for value added tax (VAT). In October, Mohammad sold goods for 8,000 inclusive of VAT. The sale
Mohammad is a sole trader and is registered for value added tax (VAT). In October, Mohammad sold goods for 8,000 inclusive of VAT. The sale was standard rated. Mohammads invoice states that there is a discount of 8% on sales if invoices are paid within 21 days. The invoice for the supply was actually paid 26 days after it was issued.
How much is the VAT on this transaction?
a)1,472
b)1,600
c)0
d)1,333
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