Ican 2023 Taxation Question 6

Fountain Hotels Limited is a group of hotels located in many parts of North Central Nigeria providing accommodation and other hospitality services. It renders its returns at the end of each month in accordance with the Value Added Tax Act 2004 (as amended). The following are the details of the transactions for the month of July 2022: N VAT on outdoor catering services 600,000 VAT on food 360,000 VAT on drinks 240,000 VAT on other vatable hotel services 270,000 VAT on drinks purchased 150,000 VAT on foodstuff purchased 210,000 VAT on kitchen equipment 480,000 VAT on professional services 240,000 You are also provided with the following additional information: (i) 30% of outdoor catering services were on credit (ii) 20% of food and drinks were on credit (iii) Other vatable hotel services were paid for in full. (iv) 25% VAT on drinks and foodstuff purchased were on credit. (v) VAT on kitchen equipment and professional services were paid for in full.