,QUESTION 1:
VAT CALCULATION FOR Lucky Dlamini Steel (Pty) Ltd (LDS) manufactures
Lucky Dlamini Steel (Pty) Ltd (LDS) manufactures a wide variety of steel products
for the building industry in South Africa. LDS is a small business corporation as
defined in the Income Tax Act. LDS’s financial year ends on 28 February 2025 and
the company is also a registered VAT vendor. LDS only makes taxable supplies and
has valid tax invoices in support of expenses incurred and payments made. The
accountant provides you with the following information for the two-month VAT
period ending on 28 February 2025. All amounts stated exclude VAT, unless
specifically stated otherwise:
QUESTION 1: VAT CALCULATION
VAT Period Ending: 28 February 2025
,Total Output VAT =
R203,713.04 + R0 + R2,475.00 + R0 + R0 + R11,325.00
R217, 513.04
INPUT VAT CALCULATIONS
,Total Input VAT =
= R 140, 265.00 + R55, 500.00 + R3,862.50 + R43, 579.50 + R15,127.65 +
337.50 + R1,350.00 +R0.00
= R260, 021.65
, VAT PAYABLE / REFUNDABLE SUMMARY
Calculation Amount (R)
Output VAT R217,513.04
Less: Input VAT (R260,021.65)
VAT Refundable (R42,508.61)
Description Amount VAT Output VAT Notes
(Exel. VAT) Rate
Sales to SA customers R1,561,800 15% R203,713.04 Bad debt excluded;
Sales to Germany R85,000 0% R0.00 Zero-rated export
Bad debt recovered R18,975 15% R2,475.00
Recovered bad debt
(incl.)
Interest on investments R5,780 Exempt R0.00 Financial service
investments
Insurance claim R189,750 N/A R0.00 Not a supply
R75,500 15% R11,325.00 commercial property
Rent Received
rent
The total Output VAT will be Amounted to R217, 513.04
Calculated as Follows:
Total Output VAT
= R203,713.04 + R0 + R2,475.00 + R0 + R0 + R11,325.00
Note: The input VAT total as R220,800.60 instead of R260,021.65.
VAT CALCULATION FOR Lucky Dlamini Steel (Pty) Ltd (LDS) manufactures
Lucky Dlamini Steel (Pty) Ltd (LDS) manufactures a wide variety of steel products
for the building industry in South Africa. LDS is a small business corporation as
defined in the Income Tax Act. LDS’s financial year ends on 28 February 2025 and
the company is also a registered VAT vendor. LDS only makes taxable supplies and
has valid tax invoices in support of expenses incurred and payments made. The
accountant provides you with the following information for the two-month VAT
period ending on 28 February 2025. All amounts stated exclude VAT, unless
specifically stated otherwise:
QUESTION 1: VAT CALCULATION
VAT Period Ending: 28 February 2025
,Total Output VAT =
R203,713.04 + R0 + R2,475.00 + R0 + R0 + R11,325.00
R217, 513.04
INPUT VAT CALCULATIONS
,Total Input VAT =
= R 140, 265.00 + R55, 500.00 + R3,862.50 + R43, 579.50 + R15,127.65 +
337.50 + R1,350.00 +R0.00
= R260, 021.65
, VAT PAYABLE / REFUNDABLE SUMMARY
Calculation Amount (R)
Output VAT R217,513.04
Less: Input VAT (R260,021.65)
VAT Refundable (R42,508.61)
Description Amount VAT Output VAT Notes
(Exel. VAT) Rate
Sales to SA customers R1,561,800 15% R203,713.04 Bad debt excluded;
Sales to Germany R85,000 0% R0.00 Zero-rated export
Bad debt recovered R18,975 15% R2,475.00
Recovered bad debt
(incl.)
Interest on investments R5,780 Exempt R0.00 Financial service
investments
Insurance claim R189,750 N/A R0.00 Not a supply
R75,500 15% R11,325.00 commercial property
Rent Received
rent
The total Output VAT will be Amounted to R217, 513.04
Calculated as Follows:
Total Output VAT
= R203,713.04 + R0 + R2,475.00 + R0 + R0 + R11,325.00
Note: The input VAT total as R220,800.60 instead of R260,021.65.
