is a VAT registered Irish business. The company had the following transactions in the period November/December 2020:

Sales:	€
Goods supplied to Irish business customers	45,000
Goods supplied to Irish private customers	32,000
Goods supplied to business customers in China	37,000
Goods supplied to business customers in France	25,000
Purchases:
Purchases of goods for resale	42,580
Car	32,000
Office supplies	4,500
Entertaining	1,850
Petrol for vehicles (inclusive of VAT at 23%)	3,000
Diesel for vehicles (inclusive of VAT at 23%)	7,000
Servicing and repairs of vehicles (exclusive of VAT at 13.5%)	10,000
Equipment from German suppliers (VAT registered)	19,000
Legal services from Italian legal firm	12,000

All figures are exclusive of VAT at the standard rate of 23%, except where stated otherwise. The car purchased is CO2 emissions category A vehicle, which is used 75% of the time for business purposes. The equipment purchased from the German suppliers was used for trade purposes.

Required

Calculate the VAT liability/refund of the company for November/December 2020. As part of your answer, explain in detail your VAT treatment of all sales, purchases and costs.

Answer rating: 100% (QA)

Solution Calculation of VAT liabilityRefund for the period NovemberDecember 2020 Outward Supplies Sa... View the full answer