Question

A registered producer at VAT department sold a product to a registered wholesaler for 25,000 who sold it not registered retailer at a profit margin 15% from its cost who sold it to consumer for 30,000 if u learn the VAT rate is 14%

Required:

1. Determine the gross value of the invoice that issued by the producer, wholesaler and retailer:
   1- Retailer is registered at VAT department
   2 Retailer isn’t registered at VAT department
   
2. Determine Tax Due that must be turned too VAT department by producer, wholesaler and retailer

Answer 1

It is assumed that figures given in quest are excluding of VAT.
1	Producer
	sales value	25000
	Add: VAT @14%	3500
	Gross value	28500
	VAT to be paid to department	3500
2	Wholesaler (Purchase cost= 25000)
	Purchase price	28500
	Add: Margin (25000*15%)	3750
		32250
	Add: VAT @ 14%	4515
	Gross Invoice value	36765
	VAT to be paid to department (4515-3750)	765
3	Retailer (if registered)
	Sale value	30000
	VAT @14%	4200
	Total Gross invoice value	34200
	Input VAT	4515
	Refund to be taken from department (4515-4200)	315
	Retailer (if Not registered)
	Sale value	30000
	VAT @14%	4200
	Total Gross invoice value	34200
	Input VAT - not allowed to taken as not registered)
	VAT to be deposited with department	4200