Question 13: Value Added Tax V70 Ltd. manufacture goods for use in property construction. It is registered for VAT and have asked you to prepare their VAT return for the quarter to 30 April 2021. They have provided you with the following notes relating to the period. 1. Invoiced sales net of VAT totalled 720,000. A settlement discount of 2.5% was taken by 15% of customers. All goods sold are standard rated 2. V70 wrote off two unpaid invoices as specific bad debts. The first was dated 16 September 2020 for 600, the second was dated 14 December 2020 for 900, both VAT inclusive 3. Standard rated goods bought for resale cost 480,000 including VAT 4. Other expenses in the period, including applicable VAT, were: a. Rent of 12,000 per month b. Staff entertainment of 2,400 c. Overseas customer entertainment of 720 d. Domestic customer entertainment of 1,560 e. Petrol of 3,720 f. Insurance of 3,600 5. V70 purchased a new car for the CFO costing 20,400 including VAT. The CFO is provided with fuel for private use and the appropriate VAT-inclusive fuel scale charge for the quarter is 334. 6. V70 purchased and capitalised new equipment costing 240,000 including VAT. Required: (a) Calculate any VAT payable or recoverable by V70 for the quarter to 30 April 2021. (b) State the date by which the return must be submitted. 10 marks 2 marks (c) Describe the implications for V70 Ltd. if they submit a late VAT return. 3 marks Total: 15 marks