Fac1501 Assignment 3
Semester 2 2023
Input Tax - ANS-VAT on purchases of goods and services.
Claimed back from SARS
Output Tax - ANS-VAT charged on the supply of goods and or
services. Amount paid to SARS
Input Tax is larger than Output Tax - - ANS-Claims the
amount of the difference fro...
Fac1501 Assignment 3
Semester 2 2023
Input Tax - ANS-VAT on purchases of goods and services.
Claimed back from SARS
Output Tax - ANS-VAT charged on the supply of goods and or
services. Amount paid to SARS
Input Tax is larger than Output Tax - - ANS-Claims the
amount of the difference from SARS. (Refundable)
Output Tax is larger than Input Tax - - ANS-the difference is
payable to SARS.
Ledger Accounts of VAT (3) - ANS-VAT Input Account
VAT Output Account
VAT Control Account
Purpose of the VAT Control Account - ANS-to determine the
amount refundable/payable to SARS
At the end of the month the VAT Input and Vat Output
account is closed of to the - ANS-VAT Control Account
Name the two types of accounting basis used by a vendor to
determine the tax payable: - ANS-The Invoice Basis
The Payment Basis
, Invoice Basis - ANS-Output Tax and Input Tax is accounted
for when an invoice is issued or on receipt of payment.
Payment Basis when is Output Tax accounted for: - ANS-
when payments are received.
Payment Basis when is Input Tax accounted for: - ANS-when
payments are made.
When may the Payment Basis be used: - ANS-Total value of
the Taxable Supplies does not exceed R 2.5 Million
What policy will determine the favorable cash flow
advantage for the vendor. - ANS-Debtors and Creditors
Payment Policy
If the payment basis is applied and the vendor grants credit
to his customers__________ , once payment has been
received from the debtor.
a) Output Tax needs to be accounted for.
b) Input Tax needs to be accounted for.
c) Both need to be accounted for. - ANS-a)
Payment Basis - when a vendor acquires goods and services
on credit, when can you claims input tax deductions
according to VAT. - ANS-When payment to the creditor is
made.
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