QUESTION 4 [20 MARKS] Part A You are required to in each of the following questions, indicate whether the statements TRUE FALSE a) VAT in South Africa is levied at 13% or 07 (1) b) Can a business register for both VAT and Tumover la? (1) el it an attomey eems more than R1 million in foes in a yeat he/she must register as a VAT Vendor (1) d) VAT is not payable on Salaries & Wnges? (1) e) VAT input can be claimed en purchase of motor vehicle? (1) Part 8 You are the financial manager of Migeron Attorneys. The firm has been in existence for number of years after resistance from one of the director to register for VAT The firm finally magister as a VAT vendor in January. The firm is in a process of submitting Its very first VAT return The followdng transaction were recorded in the current VAT period (January (All the amounts exclude VAT unless stated otherwise) January R Receipts Legal Fees Billed and paid in Cash) Legal Fees Biled but not yet paid) Payment received from client billed in December 200 000 75 000 12.000 Expenses Wages and salaries Purchase of furniturn on credit Electricity and Water Telephone Entertainment Expenditure Bank charges Interest paid on overdraft account Purchase of new motor vehicle Rent paid of fax machine Petrol parchased Payment of suppliers Maintenance of offices BE 000 50 000 4 000 1.500 5 500 900 1 800 350 000 2 500 3883 8 500 810 YOU ARE REQUIRED TO Calculate the VAT payable by or refundable to Migeroni Atomeys in respect of its first VAT return (15) QUESTION 4 [20 MARKS] Part A You are required to in each of the following questions, indicate whether the statements TRUE FALSE a) VAT in South Africa is levied at 13% or 07 (1) b) Can a business register for both VAT and Tumover la? (1) el it an attomey eems more than R1 million in foes in a yeat he/she must register as a VAT Vendor (1) d) VAT is not payable on Salaries & Wnges? (1) e) VAT input can be claimed en purchase of motor vehicle? (1) Part 8 You are the financial manager of Migeron Attorneys. The firm has been in existence for number of years after resistance from one of the director to register for VAT The firm finally magister as a VAT vendor in January. The firm is in a process of submitting Its very first VAT return The followdng transaction were recorded in the current VAT period (January (All the amounts exclude VAT unless stated otherwise) January R Receipts Legal Fees Billed and paid in Cash) Legal Fees Biled but not yet paid) Payment received from client billed in December 200 000 75 000 12.000 Expenses Wages and salaries Purchase of furniturn on credit Electricity and Water Telephone Entertainment Expenditure Bank charges Interest paid on overdraft account Purchase of new motor vehicle Rent paid of fax machine Petrol parchased Payment of suppliers Maintenance of offices BE 000 50 000 4 000 1.500 5 500 900 1 800 350 000 2 500 3883 8 500 810 YOU ARE REQUIRED TO Calculate the VAT payable by or refundable to Migeroni Atomeys in respect of its first VAT return (15)