5 (25 marks) Luna Lux (Pty) Ltd (Luna Lux) is a high-end beauty brand that offers luxurious skincare and makeup products. These products are high-quality, natural beauty products that make women feel confident and glamorous. Luna Lux is a resident of South Africa and a registered Category B VAT vendor which makes 100% taxable supplies. Below are all the transactions incurred by Luna Lux for the February 2023 VAT period under review: Description Note Value (VAT Inclusive if applicable) Sale of a store located in Johannesburg 1 R2 000 000 Lease agreement 2 R5 000 Staff workshop in Cape Town 3 R1 500 Fuel R20 000 Interest received on positive bank balance R1 000 Salaries paid R250 000 Notes: 1. Sale of a beauty store located in Johannesburg Mrs. Beauty, the owner of Luna Lux, made the decision to sell one of their beauty stores located in Johannesburg in December 2022. After finding a buyer, the store was sold at its open market value of R2 000 000 (incl. VAT) on 31 January 2023. The buyer settled the full purchase price in cash on 5 February 2023, and the store was officially registered in the buyer's name on 14 February 2023. The store was initially purchased on 1 October 2019, for R1 500 000 (incl. VAT) with the intention of using 80% of it as a beauty shop and 20% as a personal residence for the store manager. 2. Lease agreement: Luna Lux signed a lease agreement with Glam Genie (Pty) Ltd on 31 January 2023 to lease a foundation mixing machine called Foundation Forge for two years at a monthly cost of R5 000. If Luna Lux had decided to buy the machine instead, it would have cost 13 HTAX331-1-Jul-Dec2023-SA1-AP-V4-20102023 R140 000. The lease agreement with Glam Genie meets the definition of an "installment credit agreement" according to the VAT Act. 3. Staff workshop On 10 February, Mrs. Beauty sent one of the Store Managers at the Pretoria branch to Cape Town to attend a beauty workshop. The Store Manager, Mrs. Plum spent three nights in Cape Town and incurred R1 500 in total for meals that she ate at restaurants. REQUIRED: 5.1 With reference to note 1, the sale of the beauty store located in Johannesburg, discuss the VAT consequences for Luna Lux (Pty) Ltd. Your discussion should include the value and timing rules with a clear explanation and reference to the VAT Act to support your answer. Clearly distinguish between output tax and input tax. (12 marks) 5.2 Calculate the total net VAT payable by or refundable to Luna Lux (Pty) Ltd for the two months ending 28 February 2023. (13 marks) Please use the following template to provide your answers to question 5.2: Description/transaction Calculation / Explanation Output tax Input tax When there is no VAT effect in respect of a specific item, clearly state this and also provide a brief reason why there is no VAT effect. Assume all parties are registered VAT vendors. Assume a VAT rate of 15%