- 3 Marks
PT – Nov 2020 – L2 – Q2c – Value-Added Tax (VAT), Customs, and Excise Duties
Explain VAT implications when a deposit is paid and the agreement is canceled.
Question
Rejoice Baah, a VAT registered trader, reserved goods for Agya Atta costing GH¢12,000. Agya Atta paid a deposit of GH¢2,000 with the agreement that the goods be made available to him after the remaining GH¢10,000 is paid. By mutual consent, the agreement was canceled before Agya Atta could pay the remaining amount.
Required:
What are the VAT implications of the above transactions? (3 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Cancellation, Deposit Payments, Supply of Goods, VAT
- Level: Level 2
- Topic: Value-Added Tax (VAT), Customs, and Excise Duties
- Series: NOV 2020
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