SOLUTION TO QUESTION 1 May/June 2017
Part A
Ha-re-bapaleng
VAT Payable/refundable 28 February 2017 (2 month period)
VAT Output VAT Input
Transaction 1
Purchase of truck- Claim notional input VAT upon payment
Lower of cost/MV - 250 800 x 15/115 32 713
Fuel cost - zero rated -
Right of use
250800 x 100/115 x 0.6% x 15/115 x 1 171
Indemnity payment -received deemed sale
190 000 x 15/115 on 18 Feb 2017 24 783
Purchase of twin cab - Motor vehicle as defined
Therefore VAT denied -
24 953 32 713
VAT refund (Ouput less input) -7 760
Transaction 2
Indemnity received - 178 000 x 15/115 - (7 Feb17) 23 217
Replaced asset -not a VAT transaction, no money received 0
Insurance premiums - 2 460 x 15/115 321
Purchase of 2nd hand computer from non-vendor
12 000 x 15/115 x 80% - claim notional input 1 252
23 217 1 573
VAT payable (Output - Input) 21 644
Transaction 3
Change in use - Step 1: Output VAT @ 100%
(5 950x 15/115) - use greater of cost/MV 776
Change in use - Step 2: Input VAT @ 40%
(5 500 x 15/115) - use lower of cost/MV 717
New system - 8 000 x 15/115 1 043
776 1 761
VAT refund (Output - Input ) -985
Part A
Ha-re-bapaleng
VAT Payable/refundable 28 February 2017 (2 month period)
VAT Output VAT Input
Transaction 1
Purchase of truck- Claim notional input VAT upon payment
Lower of cost/MV - 250 800 x 15/115 32 713
Fuel cost - zero rated -
Right of use
250800 x 100/115 x 0.6% x 15/115 x 1 171
Indemnity payment -received deemed sale
190 000 x 15/115 on 18 Feb 2017 24 783
Purchase of twin cab - Motor vehicle as defined
Therefore VAT denied -
24 953 32 713
VAT refund (Ouput less input) -7 760
Transaction 2
Indemnity received - 178 000 x 15/115 - (7 Feb17) 23 217
Replaced asset -not a VAT transaction, no money received 0
Insurance premiums - 2 460 x 15/115 321
Purchase of 2nd hand computer from non-vendor
12 000 x 15/115 x 80% - claim notional input 1 252
23 217 1 573
VAT payable (Output - Input) 21 644
Transaction 3
Change in use - Step 1: Output VAT @ 100%
(5 950x 15/115) - use greater of cost/MV 776
Change in use - Step 2: Input VAT @ 40%
(5 500 x 15/115) - use lower of cost/MV 717
New system - 8 000 x 15/115 1 043
776 1 761
VAT refund (Output - Input ) -985