SOLUTION TO QUESTION 1 May/June 2018
Part A Paper 1
Shazia
VAT Payable/refundable 31 March 2018 (2 month period)
Part a
Shazia is expecting to make taxable supplies of 9 500 x 12 x 12 = R1 368 000 for the
year of assessment. This amount will exceed the compulsory R1million threshold in
the coming 12 months. Therefore, Shazia has an obligation to register for VAT.
Part b VAT Output VAT Input
Transaction 1
Purchase of truck- Claim notional input tax upon payment
Lower of cost/MV - 79 800 x 15/115 10 409
Fuel cost - zero rated -
Insurance - 1 684 x 15/115 220
Right of use
79800 x 100/115 x 0.6% x 15/115 x 1 54
Indemnity payment -received deemed sale
74 100 x 15/115 on 18 Feb 2017 9 665
9 720 10 628
VAT refund (9 152 - 10 007) -909
Transaction 2
Imported goods
(Import duty + 10% import duty + surcharges) x 15%
(32 000 + 3 200 + 1 250) x 15% 5 468
- 5 468
VAT Refund -5 468
Transaction 3
Purchase in terms of instalment credit agreement
62 604 x 15/115 8 166
Claim VAT on day 1
VAT refund -8 166
Transaction 4
Purchase of meals - Entertainment VAT denied -
- -
VAT refund -
c) if paying VAT through efiling, the March return is due on the 30th of April 2018.
Part A Paper 1
Shazia
VAT Payable/refundable 31 March 2018 (2 month period)
Part a
Shazia is expecting to make taxable supplies of 9 500 x 12 x 12 = R1 368 000 for the
year of assessment. This amount will exceed the compulsory R1million threshold in
the coming 12 months. Therefore, Shazia has an obligation to register for VAT.
Part b VAT Output VAT Input
Transaction 1
Purchase of truck- Claim notional input tax upon payment
Lower of cost/MV - 79 800 x 15/115 10 409
Fuel cost - zero rated -
Insurance - 1 684 x 15/115 220
Right of use
79800 x 100/115 x 0.6% x 15/115 x 1 54
Indemnity payment -received deemed sale
74 100 x 15/115 on 18 Feb 2017 9 665
9 720 10 628
VAT refund (9 152 - 10 007) -909
Transaction 2
Imported goods
(Import duty + 10% import duty + surcharges) x 15%
(32 000 + 3 200 + 1 250) x 15% 5 468
- 5 468
VAT Refund -5 468
Transaction 3
Purchase in terms of instalment credit agreement
62 604 x 15/115 8 166
Claim VAT on day 1
VAT refund -8 166
Transaction 4
Purchase of meals - Entertainment VAT denied -
- -
VAT refund -
c) if paying VAT through efiling, the March return is due on the 30th of April 2018.
