karmi Ltd is a company selling both standard-rated and zero-rated supplies. For the quarter to 30 September 2020, the following information is given.

All figures exclude VAT unless otherwise stated.

Sales (standard-rated)		€	€ 75,975
Sales (zero-rated)			65,625
			–––––––
			141,600
Purchases	Note 1	35,040
Wages		16,960
Customer entertaining	Note 2	2,760
Staff entertaining		1,860
Impaired debt written off	Note 3	630
Other expenses	Notes 1, 4	15,790
		––––––
			(73,040)
			–––––––
Profit			68,560

      

      Notes:

1. All purchases and other expenses are standard-rated.
2. Customer entertaining relates to UK customers.
3. The impaired debt related to an amount which was due in Jan.2020.
4. Other expenses include an amount of €1,795 in respect of fuel for the director’s BMW. The director does not reimburse any of the cost of the fuel for private mileage and, based on its level of CO2 emissions, the appropriate (VAT-inclusive) scale charge for his car for the quarter is €325.
5. Gifts of inventory were made to a customer in the period – the items gifted cost €1,200 and had a current replacement cost of €1,680 (VAT- inclusive amounts).

Required:
Calculate the VAT payable for the quarter ended 30 September 2020.

Answer rating: 100% (QA)

VAT input tax 75975 6562... View the full answer