Answer Case study 3
Option1:
If MDE has not obtained a license from the National Bank of Cambodia (NBC) as a leasing
company and machine is delivered in October 2021, Time of supply of machine is the time
when the machine is delivered by supplier and the recipient received it.
VAT payable = $150,000/11 = $13,636.36
Option2:
If MDE has not obtained a license from the National Bank of Cambodia (NBC) as a leasing
company and machine is not delivered in October 2021, Time of supply when the payment if
is made prior to the dispatch of machine.
Down payment
= $30,000
Installment
=($150,000 -$30,000)/12 = $10,000
Sales include VAT
= $40,000
VAT payable
= $40,000/11
= $3,636.36
Option3:
If MDE has obtained a license from the National Bank of Cambodia (NBC) as a leasing
company and machine is delivered in October 2021, the time of supply under a finance lease,
is the time when the machine are delivered, whether that delivery takes on the characteristic
of a transfer of the right to use or to dispose. VAT payable for the month of October 2021 is
calculated as follows:
Down payment
= $30,000
Installment
=($150,000 -$30,000)/12 = $10,000
Sales include VAT
= $40,000
VAT payable
= $40,000/11
= $3,636.36