Assume that the car park is the only job done by the contractor in the period

Assume that the car park is the only job done by the

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period is GHC 20,000.(Assume that the car park is the only job done by the contractor in the period and payments are made in the same period)4. Akorfa Vinyo, an equipment hiring company, raises an invoice in the sum of GHS500,000 in respect of hiring equipment services to a withholding VAT agent (Sir James Enterprise). This supply excludes Value Added Tax (VAT of 12.5%), National Health Insurance Levy (NHIL OF 2.5%), and Ghana Education Trust Fund Levy (GETFL of 2.5%). Assume that this is the only supply of value-added activity done by Akorfa Vinyo in the period and payments are made in the same period. Calculate: i.The proportion of VAT that should be withheld by the agent in respect of payment of the invoice (the withholding VAT rate is 7%) ii.The output VAT to be shown on the face of the Akorfa’s monthly VAT return
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