Joe Smith is a VAT-registered vendor running a homemade pie shop, retailing to the public. Joe...

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Joe Smith is a VAT-registered vendor running a homemade pie shop, retailing to the public. Joe Smith bought a microwave oven for R4 000 from his local Game store, also a registered VAT vendor. He paid the R4 000 using his business debit card and received a cash till slip from the Game store's cash register. Required: Q.3.1.1 Would the cash till slip be sufficient to be considered a valid source document thereby allowing Joe Smith to claim VAT back from SARS? Q.3.1.2 Into which VAT category would the purchase of the microwave oven fall? Q.3.1.3 What would distinguish this till slip from a full tax invoice? (1) (1) (2) Joe Smith is a VAT-registered vendor running a homemade pie shop, retailing to the public. Joe Smith bought a microwave oven for R4 000 from his local Game store, also a registered VAT vendor. He paid the R4 000 using his business debit card and received a cash till slip from the Game store's cash register. Required: Q.3.1.1 Would the cash till slip be sufficient to be considered a valid source document thereby allowing Joe Smith to claim VAT back from SARS? Q.3.1.2 Into which VAT category would the purchase of the microwave oven fall? Q.3.1.3 What would distinguish this till slip from a full tax invoice? (1) (1) (2)

Answer rating: 100% (QA)

Answer Q311 No the cash till slip would not be sufficient to be considered a valid source document ... View the full answer