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On Point Limited, a resident of the Republic, introduced a new accounting package on 3 0 September 2 0 2 0 to provide financial data

On Point Limited, a resident of the Republic, introduced a new accounting package on 30 September
2020 to provide financial data needed to complete its value-added tax returns.
For On Point Limiteds tax period 1 January 2021 to 28 February 2021 the following financial data
was provided by its new accounting system. When appropriate, amounts include value-added tax:
Supply of goods and services at the standard rate
402500
Supply of goods and services at the zero rate
Supply of exempt goods and services
Input tax on capital goods (note 1)
Input tax on non-capital goods and services (note 2)
Second-hand goods purchased and paid for (note 3)
Value of fringe benefits subject to value-added tax
Credit notes issued (note 4)
Credit note received (note 4)
Bad debts written off (note 5)
50000
100000
45000
48750
12650
1150
13800
6900
9200
The Commissioner has agreed with On Point Limited to a turnover-based method of apportionment,
and 80% has been agreed as the percentage applicable to the making of taxable supplies.
Notes
1. On Point Limiteds input tax on capital goods includes
R750 value-added tax on the purchase of a coffee machine for its employees common room, and
R9000 value-added tax on the purchase of a delivery van for the delivery of its goods.
2
2. On Point Limiteds Input tax on non-capital goods and services purchased includes
R360 value-added tax for membership fees paid to the local country club for its managing directors
membership, and
R270 value-added tax for his subscription to a professional society.
3. On Point Limited purchased, and paid for, a second-hand machine from a non-vendor for R12
650.
4. On Point Limiteds credit notes issued, and received, all relate to supplies made at the standard
rate of 15%.
5. Bad debts written off by On Point Limited relate to supplies made at the standard rate.
You are required to
3.1.
Determine the value-added tax due to, or from, the Commissioner for its tax period 1 January
2021 to 28 February 2021 in accordance to south africa income tax act. Provide brief reasons to support your determinations if necessary.

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