Question 1
Sky Manufacturing CC
ENDING 28/02/2014
OUTPUT VAT R 30 182
Local sales - 150 000 x15/115 R 19 565
Export sales - zero rated R -
Indirect export - 80 000 x 15/115 R 10 435
Interest income - exempt R -
Insurance award (no input vat was claimed) R -
Taxable benefit for the managing director’s motor car
((R300 000 x 100/115 x 0.3%) – R85) x 15/115 x 2 months) R 182
INPUT VAT R 21 652
Purchase of raw material (R88 000 x 15/115) R 11 478
Jewellery (Input VAT denied – not in course of business) R -
Depreciation (not a supply) R -
Purchase of double cab (input denied/ motor vehicle as defined) R -
Salaries and wages (not a supply) R -
Bad debts (R8 000 x 15/115)
or (R13 500 – R5 500) x 15/115 R 1 043
Bad debts – export sales R -
Purchased of second hand machine (R40 000 x 15/115) R 5 217
Insurance premium (R30 000 X 15/115)
or (R24 000 + R6 000) x 15/115)
R 3 913
Vat payable (Vat output - vat input) 8 530
Sky Manufacturing CC
ENDING 28/02/2014
OUTPUT VAT R 30 182
Local sales - 150 000 x15/115 R 19 565
Export sales - zero rated R -
Indirect export - 80 000 x 15/115 R 10 435
Interest income - exempt R -
Insurance award (no input vat was claimed) R -
Taxable benefit for the managing director’s motor car
((R300 000 x 100/115 x 0.3%) – R85) x 15/115 x 2 months) R 182
INPUT VAT R 21 652
Purchase of raw material (R88 000 x 15/115) R 11 478
Jewellery (Input VAT denied – not in course of business) R -
Depreciation (not a supply) R -
Purchase of double cab (input denied/ motor vehicle as defined) R -
Salaries and wages (not a supply) R -
Bad debts (R8 000 x 15/115)
or (R13 500 – R5 500) x 15/115 R 1 043
Bad debts – export sales R -
Purchased of second hand machine (R40 000 x 15/115) R 5 217
Insurance premium (R30 000 X 15/115)
or (R24 000 + R6 000) x 15/115)
R 3 913
Vat payable (Vat output - vat input) 8 530
