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 Kyles income and expenditure for the two month tax period ending 29 February 2020 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.

INCOME Sales of appliances R241 500 Repairs of appliances R26 450 Interest R2415 Indemnity award (note 1) R23 000

EXPENDITURE Bad debts (note 2) R10 350 Bank charges R805 Depreciation (note 3) R4025 Insurance premium (note 4) R3680 Fuel R920 Printing and stationery R1265 Purchases (note 5) R93 150 Salaries R28 450 Rentals (note 6) R30 536

NOTES:

1. The indemnity award of R23 000 was received from kyles insurer for trading stock that was stolen from his shop in January 2020 when he had a break in.

2. Bad debts of R10 350 were written off, comprising of: * R7 130 owing by a long standing customer on a credit sale. This customer has since emigrated and kyle has been unable to trace him. * R3 220 was lent to an employee, who left town without repaying the loan.

3. Depreciation for the two month tax period is charged for the following assets: * Shop fitting that were purchased in a previous tax period for R3 565. R258 * A computer that was purchased on 1 January 2020 for R11 500. R417 * Delivery van single cab bakkie that was purchased on 1 February 2020 for R231 150 R3350 * Total depreciation R4025

4. Insurance premiums are made up as follows: * Shop fitting R575 * Computer R529 * Delivery van R736 * Trading stock R1840 * Total premiums R3680

5. Purchases comprise as follows: * Purchase of new trading stock all from registered vendors R70 150 * Second hand trading stock purchased from registered vendors R17 250 * Second hand trading stock purchases and fully paid for from non vendors R5750 * Total purchases R93 150

7. Rentals are for the following: *Shop premises R28 750 * Cash register R1610 * Coffee machine located in the shop to make kyles employees and himself coffee R176 * Total rentals R30 536

REQUIRED: PLEASE HELP Calculate the net VAT due to or refundable from SARS for the January/February 2020 tax period. Use a VAT rate of 15%. Round off to the nearest Rand and show ALL Working. Where there is nil VAT effect, state a brief reason why. 65 Marks