A VAT taxpayer had the following data on its operations for he month of January 2018:Sales, total invoice priceP 592,480Purchases of goods, VAT not included: From VAT registered persons100,000From nonVAT registered persons8,000From persons subject to percentage taxes10,000Salaries of employees60,000Other operating expenses12,000 This is the first month of being liable to value added tax. Data in inventories at the beginning of the period bought from VAT registered persons follow:Inventory at costP 44,800Inventory at realizable value49,000Value added tax paid on beginning inventory4,800How much is the input tax? How much is the value added tax payable?

VAT is Value Added Tax paid during purchases & collected while making sales the difference to be…

Answered: How much is the input tax?…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A VAT taxpayer had the following data on its operations for he month of January 2018:

Sales, total invoice price	P 592,480
Purchases of goods, VAT not included:
From VAT registered persons	100,000
From nonVAT registered persons	8,000
From persons subject to percentage taxes	10,000
Salaries of employees	60,000
Other operating expenses	12,000

This is the first month of being liable to value added tax. Data in inventories at the beginning of the period bought from VAT registered persons follow:

Inventory at cost	P 44,800
Inventory at realizable value	49,000
Value added tax paid on beginning inventory	4,800

How much is the input tax?
How much is the value added tax payable?

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