- This topic has 0 replies, 1 voice, and was last updated 6 months ago by .
Viewing 1 post (of 1 total)
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › ACCA Forums › ACCA TX Taxation Forums › question
During the quarter, Sugar purchased several items of furniture for her office for a total of 1500 exclusive of VAT. A 5% discount was applied to this amount as Sugar had purchased two items or more.
Why is the input VAT not 1500 multiply by 20%. The VAT is charged on the actual amount paid.
Should this discount be assumed to be trade discount or discount for prompt payment.
Also the question says that a 5% discount was applied to this amount. So the amount of 1500 should be assumed to be net of discount or before applying the discount