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Lay Lawn ( Pty ) Ltd provides laying of instant lawn, lawn mowing, and maintenance services and is well known for its professional services. The

Lay Lawn (Pty) Ltd provides laying of instant lawn, lawn mowing, and maintenance
services and is well known for its professional services. The company started trading
on 1 March 2024 and immediately registered as a value-added tax (VAT) vendor. The
company makes 100% taxable supplies.
Below is a list of Lay Lawn (Pty) Ltds transactions that took place during the months
of March and April 2024. All amounts include value-added tax where applicable unless
stated otherwise.
On 1 March 2024, Lay Lawn (Pty) Ltd secured 55 annual lawn maintenance
contracts. Lay Lawn (Pty) Ltd invoiced 55 customers in both March 2024 and
April 2024 at a monthly fee of R1200(excluding value-added tax). This monthly
fee is fixed for the year.
On 1 March 2024, Lay Lawns (Pty) Ltd employed six employees (four laborers
and two supervisors). The laborers were paid R9200 each per month, and the
supervisor were paid a monthly salary of R10000 each.
On 1 March 2024, Lay Lawns (Pty) Ltd purchased, for cash, a second-hand
truck. This second-hand truck was purchased from a vendor for R196000. The
9 HBACC330-1-Jan-Jun2024-SA1-TD-V3-07062024
use of this truck was given to the one supervisor as his company car from 1
March 2024.
With regards to the truck, Lay Lawns (Pty) Ltd:
o Paid R720 for the truck licence.
o Bears the trucks full cost of fuel and maintenance. Fuel for the month of
March 2024 amounted to R7020.
This truck was stolen on 31 March 2024. An indemnity award of R142975 was
received from the companys insurers on 22 April 2024. The truck has not yet
been replaced.
Instead of paying the employees extra cash to cover their transport expenses
to and from work, Lay Lawn (Pty) Ltd purchased taxi coupons. These taxi
coupons are distributed to the employees weekly. During March and April 2024,
Lay Lawn (Pty) Ltd incurred R2535 on purchasing taxi coupons.
During March 2024, Lay Lawn (Pty) Ltd purchased herbicides, fertilisers, and
other lawn maintenance products from a registered vendor amounting to R25
605. These purchased items form part of the companys trading stock.
REQUIRED:
Calculate the net value-added tax payable to or owed by SARS for the two-month
VAT period of Lay Lawn (Pty) Ltd, which ended on 30 April 2024.
If no or zero value-added tax is applicable to a transaction, state a brief reason for
your answer.
Round your answers to the nearest rand.

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