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Part (a)

Crane Ltd, a Cork-based company, specialises in bathroom fixtures and fittings, including sinks, baths and showers. The company has the following transactions for the 2-month VAT period November/December 2020:

Sales:
To Irish business customers (VAT registered)	15,000
To Irish private customers	30,000
To Spanish business customers (VAT registered)	12,000
To German private customers	8,000
To non-EU customers	55,000
Purchases of Good for Resale:
From Irish suppliers (VAT registered)	15,450
From EU suppliers (VAT registered)	13,125
From non-EU suppliers	11,670
Other:
Purchase of delivery van	30,000
Entertaining	1,200
Office stationery	435
Petrol for car	1,100
Repairs to delivery van (13.5%)	1,300

All figures are inclusive of VAT at the standard rate of 23%, except where stated otherwise. The sale to German private customers was the only such sale in the entire year.

Required

1. Calculate the VAT liability/refund of the company for November/December 2020. You should include an explanation for your VAT treatment of all sales, purchases and costs.
2. State the due date for the submission of this return.

16. marks)

Part (b)

Explain the VAT implications of each of the following transactions:

1. An Irish start-up manufacturing company (projected turnover of 60,000 in its first year) sold goods to an Irish business customer for 10,000
2. An Irish VAT registered tax adviser provides tax advice to a business in China
3. An Irish fabric manufacturing company is registered for VAT and supplies goods to private customers both in Ireland and across the European Union. The company projects that it will be supplying goods of 300,000 to Irish customers and 300,000 to France.

(4 marks)

Total 20 marks

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