- 20 Marks
STP – Feb 2018 – L2 – Q2 – VAT Credit Notes
Explain circumstances for issuing VAT Credit Notes and tax implications for prior period supplies.
Question
a) As a Tax Consultant, you receive a note from Mr. Emilio Ditto, the Managing Director of a company based in the United Kingdom seeking to expand its operations in Africa through the opening of an office in Accra. He is interested in discussing with you details of some aspects of the VAT regime in Ghana particularly, the basic VAT concepts on the following:
(i) Under what circumstances can a VAT-registered person issue a Credit Note to cancel or amend a VAT invoice?
(ii) What are the tax liability implications for a VAT-registered person who issues a Credit Note to a customer for a supply that was made in a previous tax period?
Required:
Provide a brief for Mr. Emilio Ditto giving your responses to the issues raised above, with reference to the VAT Act, 2013 (Act 870) as amended.
b) Under the provisions of the Excise Duty Act, 2014 (Act 878), the Commissioner-General may, based on any information available, make an assessment of the amount of excise duty payable by a person.
Required:
State four (4) different circumstances under which the Commissioner-General may exercise the discretion to make an assessment of the excise duty payable by a person.
Find Related Questions by Tags, levels, etc.
- Tags: Credit Notes, Ghana Revenue Authority, Indirect Taxes, Tax Compliance, VAT, VAT Act
- Level: Level 2
- Topic: Strategic Indirect Tax Management
- Series: FEBRUARY 2018
