QUESTION $2[30$ MARKS$]$

Big Bang $($Pty$)$ Ltd is a domestic company selling telescopes. It has its year end on $31$ December and

it is a registered category B VAT vendor $($tax periods ending on February, April, June, etc.$).$ All

amounts include VAT $($if applicable$),$ and all parties involved are registered VAT vendors, unless

specifically stated otherwise.

The following are transactions related to the VAT period ending December $2023$:

Salaries paid $$ R$115,400$

Insurance costs $$ R$35,000$

Fuel on delivery vehicle $$ R$15,000$

Purchased second hand machine to be used in production from non$-$vendor $$ R$305,000$

Purchased packing material $$ R$102,000$

Sales: Local $$ R$615,000$

Export $$ R$415,000$

Bank Charges $$ R$6,800$

Interest on positive balance $$ R$22,300$

Donation to PBO $$ R$,88,600$

$2\mathrm{.}1$ Calculate the VAT payable or refundable. Show Input and Output amount separately. Where the

amount has nil effect, indicate the reason. $(15)$

$2\mathrm{.}2$ Calculate tax liability of Big Bang for the year ended $31$ December $2023.$ Where the amount has

nil effect, indicate the reason. $(15)$