SOLUTION TO QUESTION 1 Oct/Nov 2013
Skothana (PTY) LTD
VAT Payable/refundable 31 March 2014 (2 month period)
Part A
VAT Output
Sales 150 000 x 15% 22 500
Credit Sales (R490 000 x 15%) 73 500
Rentals from designers (R62 400 x 15%) 9 360
Rentals from employees - residential accommodation exempt -
Loan from Qhoma Bank – financial services exempt -
Equity contributions from shareholders – not a supply -
Indemnity Payment (R80 000 x 15/115) 10 435
Total Vat output 115 795
VAT Input
Imports
Customs value R300 000
10% of value R 30 000
Surcharges R 2 400
Total R332 400 x 15% 49 860
Purchase of second-hand fixed property
Lower of MV R120 000 and consideration paid R100 000x15/115 13 043
Sundry Payments
Fuel Cost – zero rated -
Bank Charges (R7 410 x 15/115 x 90%) 870
Maintenance Costs (R5 700 x 15/115 x 90%) 669
Insurance premium (R3 990 x 15/115) 520
Subscription fees (R1 140 x 15/115) 149
Total Vat input 65 112
Vat Refund (Vat output less Vat input) 50 683
Skothana (PTY) LTD
VAT Payable/refundable 31 March 2014 (2 month period)
Part A
VAT Output
Sales 150 000 x 15% 22 500
Credit Sales (R490 000 x 15%) 73 500
Rentals from designers (R62 400 x 15%) 9 360
Rentals from employees - residential accommodation exempt -
Loan from Qhoma Bank – financial services exempt -
Equity contributions from shareholders – not a supply -
Indemnity Payment (R80 000 x 15/115) 10 435
Total Vat output 115 795
VAT Input
Imports
Customs value R300 000
10% of value R 30 000
Surcharges R 2 400
Total R332 400 x 15% 49 860
Purchase of second-hand fixed property
Lower of MV R120 000 and consideration paid R100 000x15/115 13 043
Sundry Payments
Fuel Cost – zero rated -
Bank Charges (R7 410 x 15/115 x 90%) 870
Maintenance Costs (R5 700 x 15/115 x 90%) 669
Insurance premium (R3 990 x 15/115) 520
Subscription fees (R1 140 x 15/115) 149
Total Vat input 65 112
Vat Refund (Vat output less Vat input) 50 683
