PROPERTY OF
VarsityTimes
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TAKE YOUR PICK (OPTION A or B)
QUESTION 1
Calculation of VAT payable/refundable for the period ending 28 February 2025
Note: All amounts are VAT-exclusive unless stated otherwise. LDS is a registered vendor making only taxable supplies and has all valid tax invoices.
1. Output VAT
Transaction Amount VAT @15% (R) Explanation
(R)
Sales to South African
customers
Total sales R1,561,800 15% Includes bad debt of R13 200
Less: Irrecoverable debt (Mr. D. (13,200) (1,980) Sequestrated – Output tax
Moto) reversed
Net taxable sales
QUESTION 1
Sales: R (Assume as S) S – 13,200 VAT = (S – 13,200) × Output VAT on taxable
CALCULATION OF VAT PAYABLE/REFUNDABLE FOR 15% domestic
LDS FOR THE TAX PERIOD ENDEDsales
28 FEBRUARY 2025
Output Tax
Item Amount VAT Reason
(R) (15%)
Sales to SA customers (R13 Full amount subject to VAT, except bad debt
200 included)
Total sales to SA customers R1,561,800 15% Output VAT
Less: Irrecoverable debt R13 200 -R1 980 Sequestration = irrecoverable, no output VAT
(R13 200 × 15%) payable
Sales to Germany R85 000 R0 Zero-rated export under section 11(1)(a)
Receipt from Naidoo R18 975 R2 475 Recovery of bad debt written off → Output VAT
Disclaimer:
Attorneys (incl. VAT) (section 22(1))
The materials provided are intended for educational and informational purposes only. They
Interest received R5 780 R0 Exempt supply (section 12(a))
should not be submitted as original work or used in violation of any academic institution's
policies. Insurance
The buyerproceeds
is solely responsible for750
R189 how the materials
R25 are used. R171 250 subject to VAT
875 Apportionment:
(machine), R18 500 not (canteen)
Rent received R75 500 R11 325 Taxable supply under section 1 – rental of
VarsityTimes
For more assistance and exclusive, unique assignments, contact us on Telegram:
https://t.me/varsity_times
TAKE YOUR PICK (OPTION A or B)
QUESTION 1
Calculation of VAT payable/refundable for the period ending 28 February 2025
Note: All amounts are VAT-exclusive unless stated otherwise. LDS is a registered vendor making only taxable supplies and has all valid tax invoices.
1. Output VAT
Transaction Amount VAT @15% (R) Explanation
(R)
Sales to South African
customers
Total sales R1,561,800 15% Includes bad debt of R13 200
Less: Irrecoverable debt (Mr. D. (13,200) (1,980) Sequestrated – Output tax
Moto) reversed
Net taxable sales
QUESTION 1
Sales: R (Assume as S) S – 13,200 VAT = (S – 13,200) × Output VAT on taxable
CALCULATION OF VAT PAYABLE/REFUNDABLE FOR 15% domestic
LDS FOR THE TAX PERIOD ENDEDsales
28 FEBRUARY 2025
Output Tax
Item Amount VAT Reason
(R) (15%)
Sales to SA customers (R13 Full amount subject to VAT, except bad debt
200 included)
Total sales to SA customers R1,561,800 15% Output VAT
Less: Irrecoverable debt R13 200 -R1 980 Sequestration = irrecoverable, no output VAT
(R13 200 × 15%) payable
Sales to Germany R85 000 R0 Zero-rated export under section 11(1)(a)
Receipt from Naidoo R18 975 R2 475 Recovery of bad debt written off → Output VAT
Disclaimer:
Attorneys (incl. VAT) (section 22(1))
The materials provided are intended for educational and informational purposes only. They
Interest received R5 780 R0 Exempt supply (section 12(a))
should not be submitted as original work or used in violation of any academic institution's
policies. Insurance
The buyerproceeds
is solely responsible for750
R189 how the materials
R25 are used. R171 250 subject to VAT
875 Apportionment:
(machine), R18 500 not (canteen)
Rent received R75 500 R11 325 Taxable supply under section 1 – rental of
