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VAT Illustrations

All companies mentioned in problems use VAT deduction method PR 1. FUJI Co Ltd (FUJI) is a Vietnamese company specialising in assembly of and trading in motorbikes under brand name Zamos. The normal unit selling price of Zamos is VND50,000,000, while the total unit manufacturing cost is VND35,000,000. a. FUJI is considering issuing 10 units of the motorbike, at no charge, to its sales personnel for them to use for their work b. In October 2010, FUJI sold 100 units of the Zamos to a dealer in Quang Ninh province. In early November, the dealer returned 5 of the units to FUJI because they contained defects. c. FUJI also sold Zamos on hire purchase (purchase by instalment payment) to qualified customers, under which the customers pay for the Zamos in 24 equal monthly instalments of VND2,500,000 each over two years. d. FUJI sold 12 units of the Zamos to its 12 employees of the month in December 2010 at the special price of VND30,000,000, as an additional bonus for their outstanding performance. Compute VAT payable for each transaction.

PR 2. TrieuChen is specialize in electronics manufacturing, the business financial information in the year as follows: - Total sales excluding VAT: 6,565 million. - Rewarded employees with products at excluding VAT value: 35 million - Total deductible VAT input 243 million Calculate the VAT payable in the year. Value Added Tax rates for electronics production activities 10%

PR 3. Company Xs business activities during the year 2011 were as follows: Produced 18,500 units of product A, of which Exported 9,500 units at price $15 per unit The rest sold domestically with VAT exclusive price VND 195,000 Produced 15,800 units of product B, of which Exported 12,000 units at price $20 per unit Gifted 50 units for loyal customers The rest sold domestically with VAT exclusive price VND 240,000 The manufacturing cost of product A is 150,000 and product B is 200,000. Other expenses including Administrative expenses 800 mil, of which 15 mil is penalty due to late payment of a contract signed with JetStar company, and 50 mil is gas expenses for the above BMW car

Selling expenses 1000 mil, of which 150 mil is the depreciation of a 4 seats BMW car used by the Director for his personal activities

In the year, the company received VND 50 mil from a supplier as penalty for late delivery materials and VND 100 mil as interest earned from deposit at Vietcombank. Deductible VAT input for the year is 242 mil Compute VAT payable and CIT payable for the year 2011. Noted that VAT rate is 10%, CIT rate is 25%.

PR 4. DPS Co., a company specializing in the provision of customized hardware and software solutions for businesses, has the following invoices and bills received or issued in the month of June 2011 Date of invoice issued 13/4/2011 7/6/2011 15/5/2011 16/6/2011 20/6/2011 25/6/2011 12/11/2010 Date of invoice received 1/6/2011 7/6/2011 8/6/2011 16/6/2011 20/6/2011 25/6/2011 25/6/2011 Issued by Description VND amount (VAT exclusive) 150 mil 25 mil 30 mil 3 bil 200 mil 975 250 mil Additional information

ANB Co. DPS co., ABC co., TBH Co. DPS co., DPS co., Cosby Co.

Purchase laptops for employees Disposal of 10 used laptop Purchase new conditioners Purchase a 4 seats car Sale of customized software to M&N Co. Sale of laptops to Yahata Co. Purchase a server system

Bank transfer/VAT invoice Cash receipt/ VAT invoice Cash payment/ VAT invoice Bank transfer/VAT invoice Bank transfer/VAT invoice Bank transfer/VAT invoice Bank transfer/VAT invoice

1. Calculate the amount of output VAT and input VAT applicable to each transaction 2. Assume all the input VAT for the month of June 2011 relates to both VAT-exempt and VATtaxable activities. Calculate the total amount of deductible input VAT that DPS Co. will declare in its June 2011 VAT return. 3. Calculate VAT payable of June 2011