Question Tag: Levies

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  • 5 Marks

PT – Nov 2023 – L2 – Q5b – Value-Added Tax (VAT), Customs, and Excise Duties

Calculate the withholding tax payable for a contract including various levies and VAT.

The cost of iron rods supplied by Akinto Steel Works Ltd to Oputu Construction Ltd is worth GH¢300,000 (inclusive of National Health Insurance Levy, Ghana Education Trust Fund Levy, COVID-19 Health Recovery Levy, and Value Added Tax).

Required:
Determine the Withholding Tax payable in respect of the contract for supplies. (5 marks)

b) Determination of Withholding Tax payable in respect of the contract for supplies
Determine the VAT charged. = (300,000 *15/115) = 39,130.43
Determine the VAT exclusive amount(300,000-39,130.43) = 260,869.57

Note: Candidates who computed withholding VAT instead of 3% withholding for goods were also marked correct.
(5 marks)

  • 10 Marks

PT – Mar 2024 – L2 – Q2a -Value-Added Tax (VAT), Customs, and Excise Duties

Compute VAT and Levies payable by Pioneer Products Ltd for the year 2023.

Pioneer Products Ltd (PPL) is a manufacturer of plastic products which are supplied into both domestic and foreign markets.

The following transactions took place in the year 2023:

Transaction Amount (GH¢)
Turnover for the year 2,350,000
Export sales 570,000
Supplies to the presidency of Ghana for maintenance 205,200
Import duties paid 12,900
Import VAT Paid 43,100
Cost of local purchases (Excluding VAT) 17,100
Cost of electricity bills paid (Including VAT) 63,200
VAT paid to Ghana Revenue Authority during the year 15,900
Levies paid to Ghana Revenue Authority during the year 3,200

Required:
Compute VAT and Levies payable at the end of the year 2023. (10 marks)

Computation of VAT and Levies Payable for the year ended 2023

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