Summary
Summary TAX May Solution paper 1
- Course
- Institution
TAX May Solution paper 1
[Show more]
1 review
By: nadiavandenheefer • 6 months ago
Seller
Follow
LILSAINT
Reviews received
Content preview
SOLUTION TO QUESTION 1 May/June 2017Part A Paper 1
Delicious Bakery
VAT Payable/refundable 28 February 2017 (2 month period)
VAT Output
White bread sales - 2 242 643 x 15% 336 396
Brown bread sales - 1 207 577 x 0% - zero rated -
Scones sales - 2 155 000 x 15% 323 250
Rental income - 800 x 36 x 15% x 60% 2 592
Right of use fringe benefit
(((467 800 x100/115x 0.6%)-R85) x 15/115 x 1) 307
662 546
VAT Input
Credit noted - 150 x 15/115 20
Purchase of second hand goods, Claim only upon payment
(300 000 x 15/115) 39 130
Salaries - not carrying on an enterprise - therefore no VAT -
Fuel - zero rated -
Electricity - 6 455 x 15% 968
Purchase price - 34 500 x 15/115 4 500
Instalments - no VAT as claimed up front on purchase price -
Total Vat output 44 618
Vat payable (Vat output less Vat input) 617 927
Part b
Export sales
Dr Debtors/Bank 450 000
Cr Sales 450 000
Cr VAT zero rated (indirect export) -
The sale is a direct export sale and there-fore a zero-rated supply. Therefore no VAT is levied on the sale
Sale of asset purchased second hand from non-vendor
Dr Debtors/Bank 51 750
Cr Sales 45 000
Cr Output VAT (45 000 x 15%) 6 750
Export sale of second-hand goods where the notional input tax was claimed by the SA vendor, is not a zero-rated
supply. The VAT charge to the recipient is equal to the notional input tax claimed.
Sale of goods in South Africa to a Tourist
Dr Debtors/Bank 11 500
Cr Sales 10 000
Cr Output VAT - standard rated as service is in RSA 1 500
Normal cash sale to a client even though he is a tourist, therefore VAT at 15% is levied. It is the tourist’s
responsibility to claim back the VAT when he leaves the country.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LILSAINT. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.55. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
66475 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now