Indirect tax, Question 1

AccountsFury5

Hello,

Can someone please help me with Question 1 on
-task 5 B
-task 6
-and task 7

I can't seem to understand it, nether the less figure out the formular and my exams next week.
hopefully someone can explain it to me.

Thanks

Kkadijat

Hi, am not sure if this is the task you requested. I've done task in the practice accessment which you can access on the pract assessments without logging on to AAT site and is same as 2013 question on AAT site.

Task 5b
You need to work out task (a) first, PLUS VAT means you need to calculate the VAT the amount given and before you calculate the VAT, you also need to deduct any discount offered. So the calculation goes thus:
a) £683 -2.5% *20% = 133.18 VAT to be included on the invoice
b) The VAT included on the invoice ie your answer for (a) will be the output tax on the VAT return regardless of whether the customer took the discount advantage or not

Task 6
A). Total the VAT on SDB on UK sales and CDB on UK sales together, this is the figure for BOX 1.

. A business cannot reclaim VAT on car bought but can on a VAN so,
Calculate the VAT on the car amount and deduct it from the total VAT on purcheses
ie. 27825*20% =5565, deduct this from the TOTAL VAT on purchases
39370.98-5565= 33805.98 ( VAT to be on BOX 4)

C) BOX 7 is the total of all purchases, UK purchases, purchases from other EU member(AUISITION), and purchase from outside EU (IMPORT). SO, in this task
BOX 7 = PDB UK + PDB Zero rated import

TASK 7.
First calculate the VAT on sales that was left out in previous BOX 1 and BOX 6
£4324.15*20% = 864.83 and ADD it to VAT ON SALES. SO,

BOX 1 is calculated as:
99464.16 + 864.83 =100328.99

BOX 2. 0.00 because there was no AQUISITIONS

BOX 3. box1 + box2 = 100328.99 +0.00 = 100328.99

BOX4. 36479.74 NONE on IMPORTS

BOX 5. BOX 3 - BOX 4. 100328.99 - 36479.12 = 63849.87

BOX 6 Total of all SALES. SDB UK SALES, SDB EU DISPATCHES and EXPORT if any
SBD UK + SDB EU DESPATCHES, 497320.81+21591.86= 518912. OR 518913

BOX 7. Total of all purchases. PDB UK, PDB EU AQUISITIONS and IMPORT if any
PDB UK + PDB IMPORT, 182398.73+9118.19 = 191516 OR 191517

BOX 8. Total of all DESPATCHES TO OTHER EU
21591 OR 21592

BOX9. Total of all AQUISITIONS FROM OTHER EU (if any)
In this task NONE so BOX 9 is 0

NOTE: YOU CAN ROUND UP OR ROUND DOWN BOX 6 - BOX 9 as it is expected to be WHOLE POUNDS ONLY. For instance: 497320.81+21591.86 =518912.67
You can either use 518912 OR 518913

HOPE YOU FIND THIS USEFUL

AccountsFury5

Oh whoa thank you so much yeah this helps so much!