- 9 Marks
TAX – Nov 2021 – L2 – Q3a – Value Added Tax (VAT)
Calculation of total VAT payable by Adegboyega Enterprises to the Federal Inland Revenue Service (FIRS) for product sales.
Question
Adegboyega Enterprise is a manufacturing outfit based in Jankara, Lagos State. In 2020, the company sold its vatable product to a wholesaler, Ikeja Venture, for N3,500,000. The wholesaler sold the products to a retailer, Mrs. Adeosun, for N4,900,000, who finally sold it to consumers for N6,300,000 (VAT inclusive). Assume there was no closing inventory at each stage of the transaction.
Required:
a. Compute the total VAT payable to the Federal Inland Revenue Service by Adegboyega Enterprises on the transactions stated above.
Find Related Questions by Tags, levels, etc.
- Tags: Manufacturing, Sales, Taxable Goods, VAT, VAT Computation
- Level: Level 2
- Topic: Value-Added Tax (VAT)
- Series: NOV 2021
