TAX 3701 ASSIGNMENT 1

QUESTION 1 What is the output VAT on the income from transporting goods? (1) R63 375 (2) R84 783 (3) R97 500 (4) Rnil R650 000 × 15/115 = R84 783 3 QUESTION 2 What is the output VAT on the income from transporting passengers? (1) R28 614 (2) R30 391 (3) Rnil – exempt supply (4) Rnil – zero-rated supply  Note that the supply of public transport by road or rail is exempt from VAT if the transportation o takes place between two places within the RSA o is of fare-paying passengers and their personal effects o is supplied in the course operations of a transport business, in a vehicle operated by the supplier of the transportation service, or by a person acting as the supplier's agent Examples of exempt transport services  passenger transport in South Africa by taxi, bus, or train for a consideration  ambulance services – transporting of patients in an ambulance for a consideration QUESTION 3 What is the total output tax applic