QUESTION 1 A) By way of an example , state the difference between an “Exempt supply and a “Zero -rated supply” ? B) A second dealer buys a used fridge from a non-vendor for NAD 600 for resale. He pays the person NAD 400 immediately and the balance of NAD 200 in the next VAT period. Calculate the input tax that the second hand dealer will be entitled to claim ? C) A vendor purchases a VEHICLE for private purposes on 1 March 2020. The VEHICLE costs NAD228 000 including VAT (excludes finance charges and any other charges incurred). The vendor then decides to use the VEHICLE exclusively in his business for delivery of goods to his/her customers with effect from1 March 2020. At the time of introducing the VEHICLE into the business, it had an open market value of NAD205 200. Calculate input VAT to be claimed by the vendor?
QUESTION 1
A) By way of an example , state the difference between an “Exempt supply and a “Zero
-rated supply” ?
B) A second dealer buys a used fridge from a non-vendor for NAD 600 for resale. He
pays the person NAD 400 immediately and the balance of NAD 200 in the next
VAT period. Calculate the input tax that the second hand dealer will be entitled to
claim ?
C) A vendor purchases a VEHICLE for private purposes on 1 March 2020. The
VEHICLE costs NAD228 000 including VAT (excludes finance charges and any other
charges incurred). The vendor then decides to use the VEHICLE exclusively in his
business for delivery of goods to his/her customers with effect from1 March 2020.
At the time of introducing the VEHICLE into the business, it had an open market
value of NAD205 200. Calculate input VAT to be claimed by the vendor?
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