Kyle Naidoo, a resident of the Republic, sells and repairs household appliances from a shop

he leases in a local shopping centre. Kyle operates a sole proprietor and is registered for

VAT on the invoice basis. He makes solely taxable supplies.

An analysis of Kyle's income and expenditure for the two$-$month tax period ending

$28$ February $2023$ is set out below. Unless otherwise stated, all amounts are inclusive of

VAT, where applicable. All transactions are with registered VAT vendors, unless otherwise

stated.

Notes

The indemnity award of R$23000$ was received from Kyle's insurer for trading stock

that was stolen from his shop in January $2023$ when he had a break$-$in$.$

Bad debts of R$10350$ were written off, comprising of:

R$7130$ owing by a long$-$standing customer on a credit sale. This customer

has since emigrated and Kyle has been unable to trace him.

R$3220$ was lent to an employee, who left town without repaying the loan.

Depreciation $($for the two$-$month tax period$)$ is charged for the following assets:

Insurance premiums are made up as follows:

Purchases comprise as follows:

Rentals are for the following:

Required: Calculate the net VAT due to or refundable from SARS for the January$/$February

$2023$ tax period. Use a VAT rate of $15\%.$ Round off to the nearest Rand and show ALL

workings. Where there is a nil VAT effect, state a brief reason why. $(45$ marks$)$