SOLUTION TO QUESTION 1 Oct/Nov 2017
Part A
Life-Skill
VAT Payable/refundable 31 January 2016 (2 month period)
Part a
To compulsory register as a VAT Vendor, LifeSkill should have taxable supplies that exceed
R1million at the end of the period or are expected to exceed R1million. The taxable supplies
for LifeSkill as at the 31st of December 2017 were R920 000. Therefore, the company is not
obliged to register for VAT. The company however can choose to register voluntarily as
taxable supplies exceed R50 000.
VAT Output
Traning fees - Fees 65 000 x 15% 74 750
Traning fees - Fuel 5 000 zero rated -
Traning fees - Accomodation -
Exported services - zero rated -
Motor vehicle fringebenefit-((340000x100/115x0.3%)-R85)x 15/115 x 1 105
74 855
VAT Input
Purchase of motor vehicle - VAT denied -
Membership fees - no VAT claim as invoice in the name of individuals -
Travel cost - fuel -
Travel cost - accomodation - Inout tax denied -
Travel cost - gautrain - exempt (transport for fare paying passengers) -
Second hand printer - Claim upon payment 3 500 x 15/115 457
Change in use - 6 700 x 15/115 x 100% 874
Electricity 1 800 x 15% 270
Bank charges 540 x 15% 81
Interest paid - exempt -
Total Vat output 1 681
Vat refund (Vat output less Vat input) 73 173
Part c
VAT should be submitted and paid on the last day of the next month which
is on the 31st of March 2017.
Part A
Life-Skill
VAT Payable/refundable 31 January 2016 (2 month period)
Part a
To compulsory register as a VAT Vendor, LifeSkill should have taxable supplies that exceed
R1million at the end of the period or are expected to exceed R1million. The taxable supplies
for LifeSkill as at the 31st of December 2017 were R920 000. Therefore, the company is not
obliged to register for VAT. The company however can choose to register voluntarily as
taxable supplies exceed R50 000.
VAT Output
Traning fees - Fees 65 000 x 15% 74 750
Traning fees - Fuel 5 000 zero rated -
Traning fees - Accomodation -
Exported services - zero rated -
Motor vehicle fringebenefit-((340000x100/115x0.3%)-R85)x 15/115 x 1 105
74 855
VAT Input
Purchase of motor vehicle - VAT denied -
Membership fees - no VAT claim as invoice in the name of individuals -
Travel cost - fuel -
Travel cost - accomodation - Inout tax denied -
Travel cost - gautrain - exempt (transport for fare paying passengers) -
Second hand printer - Claim upon payment 3 500 x 15/115 457
Change in use - 6 700 x 15/115 x 100% 874
Electricity 1 800 x 15% 270
Bank charges 540 x 15% 81
Interest paid - exempt -
Total Vat output 1 681
Vat refund (Vat output less Vat input) 73 173
Part c
VAT should be submitted and paid on the last day of the next month which
is on the 31st of March 2017.
