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  • Test 1 - Vat

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    Ferdnance Chekai
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    BH Trading had turnover of $31,000 inclusive of VAT in May 2022, with $7,500 from petroleum oils and $5,000 from stationary being standard rated. Purchases totaled $7,000, with $3,000 procured from non-VAT registered traders. Non-current assets of $97,000 were purchased in 2021. Other expenses included $20,000 in salaries and $12,000 in rent paid to a non-VAT registered owner. The VAT calculation for BH Trading for May 2022 is required.

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    TEST 1 - VAT

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    BH Trading had turnover of $31,000 inclusive of VAT in May 2022, with $7,500 from petroleum oils and $5,000 from stationary being standard rated. Purchases totaled $7,000, with $3,000 procured from non-VAT registered traders. Non-current assets of $97,000 were purchased in 2021. Other expenses included $20,000 in salaries and $12,000 in rent paid to a non-VAT registered owner. The VAT calculation for BH Trading for May 2022 is required.

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    9 views2 pages

    Test 1 - Vat

    Uploaded by

    Ferdnance Chekai
    BH Trading had turnover of $31,000 inclusive of VAT in May 2022, with $7,500 from petroleum oils and $5,000 from stationary being standard rated. Purchases totaled $7,000, with $3,000 procured from non-VAT registered traders. Non-current assets of $97,000 were purchased in 2021. Other expenses included $20,000 in salaries and $12,000 in rent paid to a non-VAT registered owner. The VAT calculation for BH Trading for May 2022 is required.

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    © All Rights Reserved
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    of 2

    VAT QUESTION

    The following information refers to BH trading operations for the month of May
    2022. All figures are stated inclusive of VAT, where applicable.

    (1) Turnover
    US$
    Clothes items 10 000
    Stationary 5 000
    Beef 2 500
    Petroleum oils 7 500
    Mealie-meal 2 000
    Bread 3 000
    Building Bricks 5 000

    Defective goods returned (4 000 )


    31 000

    10% of the defective goods returned are zero rated and 20% exempt

    (2) Purchases (all standard rated)


    US$
    Domestic goods to make taxable supplies 9 000
    Goods returned for poor quality (2 000)
    7 000

    Domestic goods valued at US$3 000 were procured from non-VAT registered
    traders.

    (3) Non-current assets purchased in 2021


    US$
    Passenger motor vehicle, engine capacity, 3 300cc 50 000
    Canteen equipment 2 000
    Commercial motor vehicle 45 000
    97 000

    The passenger motor vehicle was allocated to the Accountant.

    (4) Other expenses


    US$
    Salaries and wages 20 000
    Medical aid contributions 4 000
    Traffic fines 10 000
    Office building rent 12 000
    Depreciation 7 000
    Stationery 2 000
    Repairs and maintenance 3 000
    Interest on overdraft 1 500

    Page 1 of 2
    Municipal rates 4 000

    The office building rent was paid to the owner, LM Ltd which is not registered for
    VAT.

    Deemed motoring benefits:

    Motor vehicles
    US$ RTGS (ZWL$)
    Up to 1500cc 625 81 000
    1501 to 2000cc 830 108 000
    2001 to 3000cc 1 250 162 000
    3001 and above 1 660 216 000

    REQUIRED:

    Calculate BH VAT for the month of May (25 marks)

    (NB = VAT rate is 14.5%)

    Page 2 of 2

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