Explain the basic principles of Value Added Tax $($VAT$).$ Your explanation should

cover the following:

$($i$)$ The scope of VAT $(2$ marks$)$

$($ii$)$ Taxable supplies and exempt supplies, input and output VAT $(2$ marks$)$

$($iii$)$ Differences between making zero rated supplies and making exempt

supplies $(2$ marks$)$

$($iv$)$ Types of persons who may register for VAT and circumstances under which

statutory$/$ compulsory registration and voluntary registration would apply.

$(3$ marks$)$

$($v$)$ Circumstances under which VAT registration may be cancelled. $(4$ marks$)$

$($b$)$ Explain what is meant by the tax point. $(2$ marks$)$

$($c$)$ Explain the importance of the tax point. $(2$ marks$)$

$($d$)$ Explain how the basic tax point is determined in relation to a supply of goods.

$(2$ marks$)$

$($e$)$ Explain how the tax point is determined for each of the following:

$($i$)$ Continuous supplies $(2$ marks$)$

$($ii$)$ Staged payments $(2$ marks$)$

$($iii$)$ Sale or return consignments $(2$ marks$)$

$[$Total: $25$ Marks