SALE OF NEW APARTMENTS IN BUCHAREST TO FAMILIES WHO ARE BUYING THEI...
8. Sale of new apartments in Bucharest to families who are buying their first house.Required:(i) State when a company which continues to perform economic activities may voluntarily deregister forvalue added tax (VAT), together with the deadline for submitting the application, and explain whether ornot Wednesday SRL could have deregistered for VAT in 2012, giving reasons for your answer;Note: the following lei/euro exchange rates are applicable:1 January 2007 = 3·3817 lei/euro;31 December 2011 = 4·2554 lei/euro. (4 marks)(ii) List the main differences between taxable, exempt without deduction right and exempt with deductionright supplies; (3 marks)(iii) For each of the activities 1 to 8 above, expected to be performed by Wednesday in 2012, state theapplicable VAT tax treatment. (4 marks)(b) Thursday SRL recorded the following activities in its sales and VAT acquisition journals for the year 2012. All theamounts are exclusive of VAT.leiRevenues from taxable activities 80,000Revenues from exempt without deduction right activities 50,000Revenues from exempt with deduction right activities 90,000Taxable purchases made exclusively for taxable activities 43,000Taxable purchases made exclusively for exempt without deduction right activities 38,000Taxable purchases made exclusively for exempt with deduction right activities 49,000Taxable purchases made for all its activities, collectively 30,000Where applicable, the VAT rate in respect of all of Thursday SRL’s 2012 sales and purchases is 24% and noreverse charges were applicable.Determine the output VAT and the input VAT recoverable by Thursday SRL in 2012. (4 marks)(15 marks)4 Friday SRL is a company supplying napkins which has premises in Cluj, Romania. During 2011, Friday SRL wasliable to pay corporate income tax and used the month as its taxable period for value added tax (VAT). As it fulfilledall the necessary conditions, since 1 January 2012 Friday SRL applies the special scheme of corporate income taxfor very small companies and uses the quarter as its taxable period for VAT.The following information relates to Friday SRL’s activity in 2012 (values are per quarter):Indicator Note Quarter 1 Quarter 2 Quarter 3 Quarter 4lei lei lei leiRevenues (exclusive of VAT) (1) 100,000 80,000 115,000 70,000ExpensesSalaries and social contributions (2) 19,000 27,000 54,000 22,500Purchases (exclusive of VAT) (3) (4) 40,000 30,000 50,000 20,000Notes: