Travel Line (Pty) Ltd, a transport contractor, derives its income from the transport of goods (by truck) and the transport of fare paying passengers (by bus). Since it makes both taxable and exempt supplies for VAT purposes, the commissioner has agreed to an output basis of apportionment to arrive at an acceptable input tax ratio of 75%.

An analysis of its income and expenditure for its two month tax period ending 31 December 2021 is set out below. Unless otherwise stated, all amounts are inclusive of VAT when applicable.

Notes:

1. The indemnity award of R15 960 was awarded for a note book computer (a portable computer) that was owned by Travel Line (Pty) Ltd and stolen from its premises in September 2021. On receipt of the indemnity award in December 2021, a new notebook computer was purchased by Travel Line (see note 3).

2. The bad debts written off of R23 940 all relate to debtors from transporting goods.

3. Depreciation is charged on the following two assets owned by Travel Line:

A motor car that is used by its managing director. It was purchased in January 2021 for R262 200 (R230 000 plus VAT of R32 200). The managing director has had the sole use of this motor car for the entire tax period.

A new notebook computer was purchased in December 2021 for R20 520 (R18 000 plus VAT of R2 520) to replace the notebook computer that was stolen (see note 1).

The notebook computer is used by employees in the accounting department to process the financial information of Travel Line (Pty) Ltd. No depreciation has been provided in this two month tax period for the trucks and buses owned by Travel Line since they have been depreciated in full (that is they have a nil book value)

4. Insurance premiums were incurred for the motor car used by the managing director, the notebook computer, the trucks and the buses operated by Travel Line. The insurance premium used by the managing director was R1 596. 5. Maintenance costs were incurred for the trucks and buses operated by Travel Line 6. Office equipment rentals were incurred for the following assets:

Notes: 7. Employees' subsistence include tea, coffee, sugar, milk and biscuits purchased and provided to employees during working hours. REQUIRED: Calculate the net amount of VAT due to, or from the Commissioner for the two-month tax period ended 31 December 2021