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Summary TAX3761 - Tests & Exam Notes 2024
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This document summarize the learning material for TAX3761. Exam prep , only important parts is listed.
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TAX3761, VAT:
INDEMNITY PAYMENT: (insurance claim received)
Replacement of asset = No VAT ;
Pay out = All other assets - deemed supply / Asset on which input VAT was denied (such as
motor cars and entertainment assets) - no deemed supply.
VAT only be claimed on persentage used for business purposes
DEEMED INPUT: Second-hand goods acquired from non-vendor who is a SA resident then
taxable. Deemed input claimed on the lower between purchase price and the open-
market value.
FRINGE BENEFIT: (( Purchase price * 100/115 ) *0.3%(Motorcar) / 0.6%(Any other) *
15/115 - 85 (If Employee is responsible for the full maintanance cost) * Number of
months.
,Zero-rated Supply
INDEMNITY PAYMENT:
Replacement of asset = No VAT ;
Pay out = All other assets - deemed supply / Asset on which input VAT was denied (such as
motor cars and entertainment assets) - no deemed supply.
A ‘motor car’, as defined in section 1, includes a motor vehicle, station-wagon, minibus,
double-cab light-delivery vehicle and any other motor vehicle of any kind normally used
on public roads, that has three or more wheels and is constructed or converted wholly or
mainly for the carriage of passengers.
RESIDENTAL = EXEMPT
Input tax was 60% thus claim only 60%
Where the leasehold improvements are not utilised by the lessor solely for the making of
taxable supplies as in this case, the lessor needs to account for additional output VAT
liability.
(Tax fraction x leasehold improvement per agreement x % non-taxable purpose).
He is obliged to be away from his usual place of residence and from his workplace due to
the duties of his office.
VAT registration is compulsory in the following cases:
- existing businesses whose taxable supplies have already exceeded the R1 million thres-
hold within the preceding 12 months
- existing or future businesses that have written contractual commitments to make
taxable supplies exceeding R1 million within the next 12 months
COUPONS is Exempt
Information that must appear on a tax invoice:
- The words “tax invoice”, VAT invoice or “Invoice”;
- The name, address and VAT registration number of the recipient;
- An individual serial number and the date on which the invoice is issued;
- A full and proper description of the goods or services supplied;
- The quantity or volume of the goods or services supplied; and
- Either:
1) The value of supply, amount of VAT charged and the consideration for the supply; or
2) The consideration for the supply and either the VAT charged or a statement that it
includes a charge for VAT.
, BUSINESSES INCOME TAX FRAMEWORK:
R R
Gross income
- Special inclusions
- Fringe benefits (0.3%; 0.6% ALLOWANCE)
Less: Exempt Income
Gives: Income
Less: Allowable deductions
- General deductions
- Specific deductions
- Capital allowances
Add: Taxable capital gain
Taxable income before donations
Less: Donations
Gives: Taxable income
Normal tax (28% or per SBC tax table)
Less: Prepayed tax (Provisional tax)
Gives: Net Normal tax liability
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