Adiwele Waters (Pty) Ltd (Adiwele) is a South African resident company that is situated in Port StJohns, a beautiful coastal town in Eastern Cape. The company has vast experience in purifying and distributing special water called Isinuka/Pink water. The Isinuka/pink water is believed to bring health and wealth. This type of water is only found at Isinuka Mud Caves and Sulphur Pools in Port St Johns, Eastern Cape, South Africa. Since 2020 Adiwele got a special license to be the only company that purifies, distributes, and sells the Isinuka/Pink water. The company makes 20% exempt supplies. The correct ratio as agreed with SARS for taxable supplies is 20% exempt supplies and 80% taxable supplies. Adiwele owns one wholly owned subsidiary called Pinkilicious Water (Pty) LTD, a company responsible for distribution and selling water after purification .The company has two months VAT period. All the amounts include VAT except specified otherwise. The following transactions are relevant for the two months VAT submission period ending 28 February 2023 1. The company made local sales of R2 550 000 excluding VAT for the month of January and February 2023. 2. As the first-ever export sales, the company managed to export isinuka water for R440 000 excluding VAT. 3. Sold purified water to Pinkilicious for R155 000 including VAT. Pinkilicious is not a registered VAT vendor. The open market value for purified water is R172500 including VAT. 4. One of the two delivery vehicles was stolen, a delivery vehicle and a small car from the head office, on Monday the 13th of February 2023. The insurance company agreed to reimburse Adiwele with cash for the delivery vehicle for 155 000 and R75 000 for the small car. 5. On the same date, the company discovered that office furniture to the value of R15 000 was also stolen alongside the two vehicles. The insurance company agreed to replace the furniture at exactly the same value of R15 000. 6. The company owns the new Polo Rline, which has been given to Mr. Waters, the Manager at the purification plant. Adiwele claimed the input VAT on the purchase of the vehicle 3 years ago. The vehicle was purchased for R172 500 including VAT. Mr. Waters bears the full costs of maintaining the vehicle. 7. The company paid salaries for the two months to the value of R250 000. 8. Paid interest on the loan for the Bond that was taken for the office space for R5 500. 9. Fuel cost for the month R10 500. 10. Purchased a coffee machine for R7 500 excluding VAT, employees using the machine pay for the coffee. The charge covers all direct and indirect costs. 11. Purchased a new printer for R40 25 including VAT from Cash Crusaders. 12. The company paid R7 600 excluding VAT for Mr. Mbanjwas SAICA membership fees. Mr. Mbanjwa is the CFO of Adiwele Waters. 13. The company purchased 50 000 branded filling 5 litter bottles to fill water and sell them as per their normal business. However, at the special occasion held in February 50 bottles were given to employees free of charge. Each bottle cost R15 including VAT. At the time of purchase, the bottles were bought for filling in water and for sale in the course of business and claimed input VAT of R1,96 per bottle. The bottles are usually sold for R20 including VAT per branded bottle. 14. Purchased chlorine chemical for water purification for R50 000, excluding VAT. 15. Purchased chloramine chemical for water purification for R28 750 including VAT. 16. In celebration of 3 year anniversary of Adiwele a big party was organised and a total of R1 7250 including VAT was spent on food and beverages. 17. Purchased two vehicles, a new motor car for R265 000 excluding VAT and a new delivery vehicle for 228 850 including VAT. 18. Due to high demand for delivery, further purchased a second-hand delivery vehicle for R155 000 excluding VAT from a non-vendor. The market value for the delivery vehicle is R165 000. Page 4 of 6 19. During February 2023, Adiwele wrote off a debt totaling R22 500 as bad debt. There is proof that the debt was charged and declared in the VAT return. Required Marks Calculate Adiwelss VAT payable/Refundable to SARS for the month of February 2023. Show full workings and round off to the nearest Rand.