- 15 Marks
TAX – May 2024 – L2 – SA – Q5 – Value Added Tax (VAT)
Compute VAT payable by Havillah Manufacturing Limited and identify VAT-exempt goods and services.
Question
Havillah Manufacturing Limited, engaged in manufacturing perfumes and other cosmetic products, has the following profit or loss statement for the year ended September 30, 2021:
Additional Information:
- Turnover includes N64,350,000 from export sales and N141,900,000 from local sales.
- Cost of Sales includes:
- Opening inventory (VAT inclusive): N24,915,000
- Closing inventory (VAT inclusive): N40,865,000
- Purchase of raw materials: N94,600,000
- Freight charges: N20,570,000
- Other direct materials: N13,530,000
- Plant and machinery purchased for N24,750,000 is included in opening inventory, VAT inclusive.
- VAT and withholding tax remitted during the year amounted to N2,173,180 and N1,787,500, respectively.
Required: a. Compute the net VAT payable by Havillah Manufacturing Limited for the year. (10 Marks)
b. State FIVE VAT-exempt goods. (2½ Marks)
c. State FIVE VAT-exempt services. (2½ Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Exempt Goods, Exempt Services, Manufacturing, Net VAT Payable, VAT
- Level: Level 2
- Topic: Value-Added Tax (VAT)
- Series: MAY 2024
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