TAX3701 Summary

,
, VAT rate 1 April 2018
changed 14% -> 15%


VAT VAT is a tax that is levied at every stage of the production process
DIRECT INDIRECT
Therefore, every time a VAT vendor sells goods or services VAT must be
Selling price excluding VAT R 100 levied (called output tax).
ADD: VAT at 15% R 15
Selling price including VAT R 115 The VAT vendor buying the goods or services will be allowed to claim
back the VAT paid (called input tax).

Goods and services sold Levy OUTPUT TAX Goods and services purchased Claim INPUT TAX




1. Standard rate (15%) Added to
products
2. Zero rate (0%) sold

, 1. Calculate the output tax income (sales) The supply is the earlier of:
• Time the invoice is issued
2. Calculate the input tax expense (cost of sales) INVOICE BASIS
• Time the payment is received by
3. Determine the VAT adjustments the supplier

4. Input tax > output tax = Refundable by SARS PAYMENT BASIS When payments are made/ received
Input tax < output tax = Payable to SARS




Taxable supplies for preceding
COMPULSORY
12 months > R 1 million

Taxable supplies for preceding
VOLUNTARILY
12 months > R 50 000


1. Periods of two months ending on the last day of January, March, etc (odd months)

2. Period of two months ending on the last day of February, April, etc (even months)

3. Periods of one month ending on the last day of each month.

4. Periods of 6 months ending on the last day of February and August.