Question
Question 4: (15 points): A1,B3,D3 A) What is VAT? what is the difference between input and output VAT? B) Samo is a trader who purchases
Question 4: (15 points): A1,B3,D3
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:
- If it standard rate is 20%. How will much the trader pay to HMRC or HMRC will pay for him?
- If it Zero rate (0%). How much the trader will pay for HMRC or HMRC will pay to Samo ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Practice Of Modern Internal Auditing
Authors: Lawrence B Sawyer
2nd Edition
0894130927, 978-0894130922
