Question $8$

On $1$ March $2020,$ Ben purchased a building for R $4000000.$ On $1$ November $2022$ Ben sold the building as a going concern to John, a registered

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Vat vendor, for R$4250000($excluding VAT$).$The open market value on the date of the sale is R$4500000.$ Ben used the building $75\%$ for making

taxable supplies and $25\%$ exempt supplies. Calculate the VAT implications.

Marked out of $1\mathrm{.}00$

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A$.$ Input Tax is zero rated

B$.$ Input tax to be claimed is R$675000$

C$.$ Input tax to be claimed is R$586957$

D$.$ Output tax to be paid is R$637500$