SeeSaw CC, a vendor registered for VAT purposes on the invoice basis, 
QUESTION 1 INFORMATION: See Saw CC, a vendor registered for VAT purposes on the invoice basis, provides the following information for the period July and August 2019 (all amounts include VAT at 15% where applicable, and tax invoices have been issued for all supplies and, where applicable, received from all suppliers): R Extracts from the cashbook: Cash receipts (Note 1) Cash sales in the Republic Sales in Lesotho (delivery was made outside the Republic) Sales in Namibia (delivery was made outside the Republic) Receipts from debtors: South Africa 80 400 64 500 54 700 21 200 Zambia 16 700 Kenya 14 720 Cash payments Bank charges 1 870 Interest on bank overdraft 1 470 Fuel 4 800 Entertainment expenses 1 200 Stock purchases (Note 1) 24 900 Payments to creditors for stock purchases 40 700 Rent paid 4870 Depreciation 17 000 Motor vehicle purchased (Note 2) 49 800 112 000 Second hand delivery vehicle purchased (Note 2) Short-term insurance premiums-fire and theft of stock 1 800 Additional information: 1. Debtors, creditors and stock 30 August Debtors: South Africa Zambia Kenya 1 July R 47 000 34 200 28 500 R 74 100 39 900 36 480 Creditors - purchase of stock Stock on hand at cost (excluding VAT) 53 000 35 000 49 000 45 000 2. A motor car for use in the business was purchased from a vendor, and a second-hand delivery vehicle was purchased from a person not registered for VAT, for use in the business. The person confirmed in writing that the sale of the vehicle was not a taxable supply. The company does not deal in the buying and selling of cars. 3. A new delivery vehicle was purchased and delivered on 1 July in terms of an instalment credit agreement. The purchase price was R83 000 (including VAT at 15%). The first instalment of R10 200 was payable on 1 July and includes interest amounting to R1 200. Required: 1.1 Calculate VAT payable to or refundable by, the Commissioner for the VAT period ending 30 August 2019 (round off to the nearest rand). Show all workings and notes where applicable 1.2 In terms of Section 17 (2), input tax is denied on certain expenses even though they are incurred in the course of business. Provide FOUR (4) examples of such inputs. 1.3 The accounting basis assists in determining the time of a supply for the purpose of VAT. What are the TWO (2) accounting basis that are used when calculating VAT payable or refundable? QUESTION 1 INFORMATION: See Saw CC, a vendor registered for VAT purposes on the invoice basis, provides the following information for the period July and August 2019 (all amounts include VAT at 15% where applicable, and tax invoices have been issued for all supplies and, where applicable, received from all suppliers): R Extracts from the cashbook: Cash receipts (Note 1) Cash sales in the Republic Sales in Lesotho (delivery was made outside the Republic) Sales in Namibia (delivery was made outside the Republic) Receipts from debtors: South Africa 80 400 64 500 54 700 21 200 Zambia 16 700 Kenya 14 720 Cash payments Bank charges 1 870 Interest on bank overdraft 1 470 Fuel 4 800 Entertainment expenses 1 200 Stock purchases (Note 1) 24 900 Payments to creditors for stock purchases 40 700 Rent paid 4870 Depreciation 17 000 Motor vehicle purchased (Note 2) 49 800 112 000 Second hand delivery vehicle purchased (Note 2) Short-term insurance premiums-fire and theft of stock 1 800 Additional information: 1. Debtors, creditors and stock 30 August Debtors: South Africa Zambia Kenya 1 July R 47 000 34 200 28 500 R 74 100 39 900 36 480 Creditors - purchase of stock Stock on hand at cost (excluding VAT) 53 000 35 000 49 000 45 000 2. A motor car for use in the business was purchased from a vendor, and a second-hand delivery vehicle was purchased from a person not registered for VAT, for use in the business. The person confirmed in writing that the sale of the vehicle was not a taxable supply. The company does not deal in the buying and selling of cars. 3. A new delivery vehicle was purchased and delivered on 1 July in terms of an instalment credit agreement. The purchase price was R83 000 (including VAT at 15%). The first instalment of R10 200 was payable on 1 July and includes interest amounting to R1 200. Required: 1.1 Calculate VAT payable to or refundable by, the Commissioner for the VAT period ending 30 August 2019 (round off to the nearest rand). Show all workings and notes where applicable 1.2 In terms of Section 17 (2), input tax is denied on certain expenses even though they are incurred in the course of business. Provide FOUR (4) examples of such inputs. 1.3 The accounting basis assists in determining the time of a supply for the purpose of VAT. What are the TWO (2) accounting basis that are used when calculating VAT payable or refundable? QUESTION 1 INFORMATION: See Saw CC, a vendor registered for VAT purposes on the invoice basis, provides the following information for the period July and August 2019 (all amounts include VAT at 15% where applicable, and tax invoices have been issued for all supplies and, where applicable, received from all suppliers): R Extracts from the cashbook: Cash receipts (Note 1) Cash sales in the Republic Sales in Lesotho (delivery was made outside the Republic) Sales in Namibia (delivery was made outside the Republic) Receipts from debtors: South Africa 80 400 64 500 54 700 21 200 Zambia 16 700 Kenya 14 720 Cash payments Bank charges 1 870 Interest on bank overdraft 1 470 Fuel 4 800 Entertainment expenses 1 200 Stock purchases (Note 1) 24 900 Payments to creditors for stock purchases 40 700 Rent paid 4870 Depreciation 17 000 Motor vehicle purchased (Note 2) 49 800 112 000 Second hand delivery vehicle purchased (Note 2) Short-term insurance premiums-fire and theft of stock 1 800 Additional information: 1. Debtors, creditors and stock 30 August Debtors: South Africa Zambia Kenya 1 July R 47 000 34 200 28 500 R 74 100 39 900 36 480 Creditors - purchase of stock Stock on hand at cost (excluding VAT) 53 000 35 000 49 000 45 000 2. A motor car for use in the business was purchased from a vendor, and a second-hand delivery vehicle was purchased from a person not registered for VAT, for use in the business. The person confirmed in writing that the sale of the vehicle was not a taxable supply. The company does not deal in the buying and selling of cars. 3. A new delivery vehicle was purchased and delivered on 1 July in terms of an instalment credit agreement. The purchase price was R83 000 (including VAT at 15%). The first instalment of R10 200 was payable on 1 July and includes interest amounting to R1 200. Required: 1.1 Calculate VAT payable to or refundable by, the Commissioner for the VAT period ending 30 August 2019 (round off to the nearest rand). Show all workings and notes where applicable 1.2 In terms of Section 17 (2), input tax is denied on certain expenses even though they are incurred in the course of business. Provide FOUR (4) examples of such inputs. 1.3 The accounting basis assists in determining the time of a supply for the purpose of VAT. What are the TWO (2) accounting basis that are used when calculating VAT payable or refundable? QUESTION 1 INFORMATION: See Saw CC, a vendor registered for VAT purposes on the invoice basis, provides the following information for the period July and August 2019 (all amounts include VAT at 15% where applicable, and tax invoices have been issued for all supplies and, where applicable, received from all suppliers): R Extracts from the cashbook: Cash receipts (Note 1) Cash sales in the Republic Sales in Lesotho (delivery was made outside the Republic) Sales in Namibia (delivery was made outside the Republic) Receipts from debtors: South Africa 80 400 64 500 54 700 21 200 Zambia 16 700 Kenya 14 720 Cash payments Bank charges 1 870 Interest on bank overdraft 1 470 Fuel 4 800 Entertainment expenses 1 200 Stock purchases (Note 1) 24 900 Payments to creditors for stock purchases 40 700 Rent paid 4870 Depreciation 17 000 Motor vehicle purchased (Note 2) 49 800 112 000 Second hand delivery vehicle purchased (Note 2) Short-term insurance premiums-fire and theft of stock 1 800 Additional information: 1. Debtors, creditors and stock 30 August Debtors: South Africa Zambia Kenya 1 July R 47 000 34 200 28 500 R 74 100 39 900 36 480 Creditors - purchase of stock Stock on hand at cost (excluding VAT) 53 000 35 000 49 000 45 000 2. A motor car for use in the business was purchased from a vendor, and a second-hand delivery vehicle was purchased from a person not registered for VAT, for use in the business. The person confirmed in writing that the sale of the vehicle was not a taxable supply. The company does not deal in the buying and selling of cars. 3. A new delivery vehicle was purchased and delivered on 1 July in terms of an instalment credit agreement. The purchase price was R83 000 (including VAT at 15%). The first instalment of R10 200 was payable on 1 July and includes interest amounting to R1 200. Required: 1.1 Calculate VAT payable to or refundable by, the Commissioner for the VAT period ending 30 August 2019 (round off to the nearest rand). Show all workings and notes where applicable 1.2 In terms of Section 17 (2), input tax is denied on certain expenses even though they are incurred in the course of business. Provide FOUR (4) examples of such inputs. 1.3 The accounting basis assists in determining the time of a supply for the purpose of VAT. What are the TWO (2) accounting basis that are used when calculating VAT payable or refundable
