VAT COMPUTATIO Cast Study-Westico Foods Limited. Westico Foods Limited (WFL) is

Question

VAT COMPUTATIO

Cast Study-Westico Foods Limited.

Westico Foods Limited (WFL) is a trading company that does brisk trading in the baking and delivery industry. WFL is located in a busy hub of Kingston, St. Andrew. Jamaica and has subsidiaries in Caribbean countries such as Trinidad and Tobago and Barbados. The business is VAT/GCT registered with Tax Administration Jamaica, and the subsidiaries also registered with the Tax Authorities in the respective countries. WFL has just come to the end of it sbi-monthly VAT/GCT period. The company has recorded the following transactions over the period:

Sales -VAT/GCT inclusive J$130,000 Sales -

VAT/GCT exclusive J$120,000

Purchases VAT inclusive J$75,000

Purchases VAT inclusive J$50,000

Imports of J$75,000 inclusive of J$15,000 VAT

The VAT/GCT rate is 12.5% on Sales and on Purchases

Requirements:

1. Show the summarized transactions as they would appear in the books of WFL.

2. What are the VAT/GCT Payable / Refundable for the period?

Explanation / Answer

1. Calculation of Output Vat

Sales inclusive of Vat - J$130000

Vat amount included in above sales = (130000/112.5)*12.5 = 14444

Sales exclusive of Vat - J$120000

Vat - 120000*12.5% = 15000

Total Output Vat = 14444+15000 = 29445

2. Calculation of Input Vat

Purchase inclusive of Vat - J$ 75000

Vat amount in above figure = (75000/112.5)*12.5 = 8333

Purchase exclusive of Vat - J$ 50000

Vat amount - 50000*12.5% = 6250

Import of goods - 75000

Vat inclusive = 15000

Total Input Vat - 8333+6250+15000 = 29583

Vat Refundable = 29583-29445 = J$138

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.