a.

|n re|at|on to the VAT Act 6ap 472, d|fferent|ate between Exempted and Zero-Rated 8upp||es
and 8erv|ces (4 marks}

Exempt supp||es and serv|ces - Trese supp||es ard serv|ces lral are rol laxao|e ard do rol lorr parl ol
lre laxao|e lurrover. Persors Wro dea| exc|us|ve|y |r exerpl supp||es ard serv|ces are rol ||ao|e lo
reg|sler lor vAT ard lrerelore, carrol c|a|r |rpul lax or lrese supp||es ard serv|ces. Exerpl supp||es ard
serv|ces are spec|l|ed |r lre secord ard lr|rd scredu|es respecl|ve|y ol lre vAT Acl CAP 1Z.

Zero rated supp||es and serv|ces - Trese are supp||es ol goods ard serv|ces lral are suojecl lo lax oul
al lre rale ol zero percerl. Trey are cors|dered lo oe laxao|e or|y lral lrey are laxed al rale ol zero
lrerelore, a persor dea||rg exc|us|ve|y |r Zero raled |lers W||| rave lo oe reg|slered lor vAT lo erao|e r|r
recover r|s |rpul lax or zero raled |rpuls. 0oods ard serv|ces ard persors or |rsl|lul|ors zero raled are
dela||ed |r lre l|llr ard e|grlr scredu|e.

b. Ram-Rom Ltd, a VAT reg|stered company, commenced trad|ng as a manufacturer of computer
equ|pment on 1
st
Hay 2009 and |ts output and |nput were as be|ow.

Augusl 3epleroer 0clooer Noveroer 0eceroer

Ksrs. Ksrs. Ksrs. Ksrs. Ksrs.
3a|es 150,000 580,000 2,180,000 3,010,000 3,150,000
0oods purcrased 3,00,000 1,320,000 280,000 320,000 15,000
3erv|ces lrcurred 21,000 280,000 310,000 1,000 500,000
0oods relurred oy
cuslorers 2,000 10,000 0 0 0

Tre aoove l|gures are a|| |rc|us|ve ol vAT.
Requ|red
Ca|cu|ale lre arourl ol vAT payao|e eacr rorlr assur|rg lral a|| cuslorers pa|d W|lr|r ore rorlr.
(11 rar|s)

8ee attached so|ut|on