ACCA TX ^UK Syllabus F. Value Added Tax - Relief available for impairment losses on trade debts - Past Papers ^{8 / 11}

Garfield has been registered for valued added tax (VAT) since 1 April 2008. Garfield has previously completed his VAT returns himself, but for the quarter ended 31 March 2015 there are some items for which he is unsure of the correct VAT treatment.

Garfield’s partly completed VAT computation for the quarter ended 31 March 2015 is shown below. All of the completed sections of the computation are correct, with the omissions marked as outstanding (O/S).

Note 3 – Impairment losses
On 31 March 2015, Garfield wrote off three impairment losses. Details are as follows:

Required:

Calculate VAT payable by Garfield relating to Note 3 only for the quarter ended 31 March 2015.

(c) Note that in answering this part of the question, you are not expected to take account of any of the information provided in parts (a) and (b) above unless otherwise indicated.

The following information is available in respect of Greenzone Ltd’s value added tax (VAT) for the quarter ended 31 March 2013:

(4) On 31 March 2013, Greenzone Ltd wrote off an impairment loss in respect of a sales invoice that was issued on 15 September 2012. This invoice was due for payment on 31 October 2012. Output VAT of £640 was originally paid in respect of the sale.

Required:
(i) Calculate the amount of value added tax (VAT) payable by Greenzone Ltd for the quarter ended 31 March 2013;