Sports Wear (Pty) Ltd manufactures sports equipment for the local and export market. It is a registered vendor for the purposes of VAT. The following information has been extracted from the accounting records of the company in respect of its VAT two-month period ending on 30 September 2019 (all amounts listed below include VAT where applicable):

Income	Notes	R
Local sales		136 800
Export sales		43 200
Interest on overdue accounts		456
Discount received		3 648
Bad debts recovered	1	2 059
Indemnity receipt	2	28 500
Expenditure	Notes	R
Purchases of raw materials		79 800
Salaries and wages		45 400
Petrol		2 468
Motor vehicle repairs and maintenance		3 534
Insurance of motor vehicles		1 995
Motor vehicle purchases	3	155 000
Motor vehicle depreciation		5 260
Printing and stationery		3 876
Discount allowed on local sales		3 920
Bad debts written off	4	4 633
Overdraft interest		2 486
Bank charges		432
Entertainment and subsistence	5	2 622
Rental of premises		11 400
Rental of computer		1 710

Notes:

1. Two debts which had been written off in previous tax periods were recovered during the tax period.
   1. An amount of R1 595 was recovered from Jim Daly relating to a local sale made to him in August 2017.
   2. An amount of R464 was recovered from an export debtor in respect of a sale during January 2018.
2. The indemnity receipt represents an insurance payout from the companys insurers. A motor vehicle (a motor car as defined) of the company was stolen on 31 August 2019 and has not since been recovered. The vehicle, an Uno motor car, had been acquired at a cost of R35 000 (including VAT) on 31 August 2018 from which date onwards a salesman had the right of use. The book value of the motor vehicle on 31 August 2019 was R28 000.
3. The following motor vehicles were purchased by the company during the tax period.
   1. Second-hand Volkswagen pick-up. This vehicle was purchased to replace the stolen Uno (see note 2 above). The salesman had chosen a bakkie. The second-hand bakkie (not a double cab) was acquired for cash on 1 September 2019 at a cost of R40 000. No VAT was payable on the transaction as the bakkie was acquired from a non-vendor.
   2. Toyota Hilux bakkie. This vehicle is used by the company for the transport of goods. The vehicle cost R115 000 (including VAT).
4. Two bad debts were written off during the tax period.
   1. An amount of R2 850 owing by a local debtor in respect of a sale made during January 2018.
   2. An amount of R1 783 owing by an export sale debtor in respect of a sale made during January 2018.
5. Entertainment and subsistence includes the following:
   1. Staff teas and coffee, R684.
   2. Club subscriptions for managing directors membership of the local golf club, R798.
   3. Hotel costs incurred by managing director while away on business in Johannesburg, R1 140.

Source: Adapted from Brettenny, A. (2019). A Students Guide to the Value-Added Tax Act. 22nd ed. Johannesburg: LexisNexis.

You are required to calculate the amount owing to, or refund due from, SARS in respect of VAT for the tax period ending 30 September 2019.

Notes to Students

• Work to the nearest rand.
• Clearly indicate if the amount is input tax or output tax.
• Clearly indicate (with a brief reason) where there is no VAT or a Rnil VAT effect.
• Give reasons to support your workings where necessary.