We have data of a trading establishment in a month as follows:

• At the beginning of the month, 10,000 units of product X are left in stock. The before-VAT price of these products is VND50,000 per unit.

• Purchase in the month:

• Purchase from SA Co. 5,000 units with before-VAT price written on value added invoice VND55,000 per unit.

• Purchase from a business household 3,000 units with price written on goods sale invoice VND56,000 per unit.

• Purchase from AS Co. 2,000 units with before-VAT price VND55,000 per unit.

The value added invoice is not written the seller’s name.

• Sale in the month: 15,000 units of product X with before-VAT price VND60,000 per unit.

• The creditable input tax of other purchased goods and services is VND3,000,000

• VAT rate: 10%;

• The establishment applies credit method;

• Bank payments are used to the above purchase.

Exercise 2

You are provided with the following information relating to ABC company, for the quarter ended 30 April year N:

1. Sales:

- 10% supplies (excluding VAT) VND 200,000,000

- Zero - rated supplies	VND 150,000,000
- Exempt supplies	VND 50,000,000
2. Input VAT had been paid
- For production 10% supplies	VND 7,000,000

- For production Zero - rated supplies VND 4,000,000

- For production Exempt supplies	VND3,000,000
- General overhead	VND4,000,000

Required: Compute the VAT payable for the quarter ended 30 April year N. Given that:

• ABC applies credit method;

• Zero - rated supplies are supported with sufficient documents as prescribed by law;

• All purchases were supported with legitimate invoices;

• Bank payments are used to the above purchase;

• The general overhead cannot be directly attributed to any of the listed supplies.

Exercise 3

A Vietnamese join stock company, which engages in garment production. This company applies credit method, had the following transactions during the tax period for which creditable input VAT is questioned. All amounts are stated exclusive of VAT at 10%.

1. Purchased goods with invoiced value of VND 200 million. During transportation to the company warehouse, due to an accident, one third inventory was damaged. The good were not insured, no one compensated for the damage. The purchased goods were supported with legitimate invoice and with Bank payment.

2. Purchased a 5-seater car at a value of VND 2,000 million. The purchase car was supported with legitimate invoice and with Bank payment.

3. Purchased goods with invoiced value of VND 30 million. The purchase goods were supported with VAT invoice, but the seller’s address was not written and with Bank payment.

4. Received an invoice for 2,000 million for the construction of a canteen for employees working in the company’s factory in the industrial park. The invoice is legitimate and with Bank payment.

5. Purchased goods with invoiced value of VND 50 million. The purchase goods were supported with VAT legitimate invoice, and with cash payment.

6. Purchased goods with invoiced value of VND 15million. The purchase goods were supported with VAT legitimate invoice, and with cash payment.

Required: For each of the above items, calculate the creditable and/or uncreditable input VAT and explain the reason for your treatment.

Exercise 4

We have data in the month of a company as follows:

• Sell 12,000 units of product A in domestic market with before-VAT price of VND30,000 per unit.

• Sell 10,000 units of product B in a domestic market with before-VAT price of VND20,000 per unit.

• Export 2,000 units B with before-VAT price of VND30,000 per unit. Exported goods are eligible for creditable input tax.

• Deliver to a sale agent selling goods at prices fixed by the goods owner for commission 2,000 units of product B with before-VAT price of VND30,000 per unit, using the delivery bills for goods to sale agency together with the internal transfer orders. The sale agent make list of sold goods and send to the company report that they have sold 1,000 units of product B.

• The input VAT from purchased goods and services in the month is VND20,000,000. The company cannot separately account the input tax for every activity.

1. VAT output

• Sell 12,000 units of product A in domestic market: exempt from

VAT

• Sell 10,000 units of product B in a domestic market 10,000 x VND 20,000 x 10% = VND 20,000,000
• Export 2,000 units B 2,000 x VND 30,000 x 0% = 0

• Sale through agent

1,000 x VND 30,000 x 10% = VND 3,000,000 Total output VAT VND 23,000,000

2. Deductible input VAT

VND 20,000,000 x(10,000 x VND 20,000 + 2,000 x VND 30,000+ 1,000 x VND 30,000/10,000 x VND 20,000 + 2,000 x VND 30,000+ 1,000 x VND 30,000 + 12,000 x VND 30,000) = VND …….

3. VAT payable

Required 1: Compute VAT payable for the month and fill in VAT declaration form. Given that, product A is exempt from VAT, product B is a taxable item with VAT rate of 10%. The company applies credit method. Exported goods are supported with sufficient documents as prescribed by law. All purchases in the month were supported with legitimate invoices.

Required 2: Calculate VAT payable for the month, suppose that 12,000 units of product A are exported instead of selling in domestic, other data remains unchanged.

Exercise 5

We have data in a month of a company in Hanoi:

• Purchase in the month:

• 3,000 units with before-VAT price of VND260,000 per unit.

• 100 units with price written on normal invoice of VND27,500,000

• Selling in the month:

• 10,000 units with before-VAT price of VND300,000 per unit

• Using ex-warehousing-cum-internal transport bills together with the internal transfer orders to deliver 500 units to a dependent cost-accounting establishment based in Hanoi. The dependent cost-accounting establishment reports that the sold quantity is 400 units with before-VAT price of VND310,000 per unit

• Sale of mobile selling in Haiphong is as follows: 3,500 units with before-VAT price of VND310,000 per unit. The company has declared and paid VAT in Haiphong.

- The creditable input VAT of other purchased goods and services is VND5,000,000

Required: Calculate VAT payable for the month in Hanoi and in Haiphong, given that:

• The establishment applies credit method;

• Tax rates: 10%;

• Bank payments are used to the above purchase.

Exercise 6

A corporation engaging in wooden furniture production has the following data for a tax month:

• Export sales: 100 sets of table and chairs with FOB price of VND400 million.

• Sales to companies in EPZs: 50 sets of table and chairs with price at the border gate of EPZs of VND250 million.

• Domestic sales (at before VAT price): VND600 million.

• Total input VAT shown on value added invoices: VND80 million of which VND10 million belonged to a damaged load of wood caused by fire.

• Bank payment was applicable to all transactions of this corporation. Exported sets of table and chairs and tables and chairs sold to companies in EPZs were qualified for tax credit. VAT rate applicable to wooden furniture is 10%.

Required: Calculate the VAT amount payable by this corporation for the tax month. Given that, the damaged load of wood has been compensated by an insurance company.

Answer rating: 100% (QA)

Exercise 1 Purchase in month VAT 5000550001027500000 Input VAT book is deducted 27500000 Purchase from a business household 3000 units No input deductible VAT No input deductible VAT because it is bus... View the full answer