Fiadh operates her own caf in Galway city centre. Fiadhs business is VAT registered and she prepares

Fiadh operates her own café in Galway city centre. Fiadh’s business is VAT registered and she prepares her VAT returns on an invoice basis. Fiadh has provided you with the following information from her accounts for the period 1 November 2020 to 31 December 2020. All figures are exclusive of VAT:

                                                                                       € Sales (Note 1)

Sales of hot drinks, hot food & take away food 38,000

Sales of soft drinks, bottled water & confectionery 22,000

Purchases:

Coffee beans (zero-rated) 4,000

Ingredients for Food (zero-rated) 5,200

Ingredients for Food (standard rate) 3,800

Rent (landlord does not charge VAT) 7,500

Wages 17,500

Electricity 1,200

Rates on rented unit 600

Accounting and Tax services 1,000

Christmas party (Note 1) 1,200

New Coffee Machine 4,000

Note 1: On 18 December 2020 Fiadh arranged an overnight stay with dinner and drinks for his staff in a hotel in Galway. The cost of the accommodation was € 900 and the balance related to food and drink. VAT of € 108 was charged by the hotel. 

Requirement:

Calculate the VAT payable / receivable for the bi-monthly VAT period November / December 2020.

Answer rating: 100% (QA)

To calculate the VAT payable or receivable for the bimonthly VAT period of NovemberDecember 2020 we ... View the full answer