VAT is a consumption tax in the domestic economy that is collected through the production and distribution processes with each intermediary passing on the tax to the next until the final consumer has paid. This implies that VAT is only charged on the value added at each stage in the production and distribution of supplies.

a) Identify the basic considerations that must be satisfied, for VAT to be levied on a local supply.

b) Explain the main Arguments for the Introduction of VAT in Uganda

c) The following purchases and sales were made by DELTA Co. Ltd, VAT No. U023Z, during the month of March 2022.

Date 2009		Sal	es	Purchases
	Quantity		Unit Price	Quantity	Unit Price
April. 1 6 18 26	75 48 88 27		325,000 315,000 237,000 350,000	61 32 87 10	320,000 345,000 260,000 240,000

There were no opening stocks at the beginning of the month and what is purchased is all sold during the month.

Required:

Establish the VAT payable/claimable by DELTA Company Ltd assuming that the sales figures are VAT exclusive while purchases figures are VAT inclusive.