Val Kilmer, resident of the Republic, sells and repairs watches from a shop he leases in a local shopping centre. He is a sole proprietor and is registered for value-added tax on the invoice basis. An analysis of Vals receipts and accruals and expenditure for his two-month tax period ending 30 September 2022 is set out below. Unless otherwise stated, all amounts are inclusive of value-added tax when applicable. He makes solely taxable supplies. Receipts and accruals R Sales of watches 322 000 Repairs of watches 34 500 Interest 5 175 Indemnity award (note 1) 51 750 Expenditure Bad debts (note 2) 3 225 Bank charges 920 Depreciation (note 3) 19 145 Insurance premiums (note 4) 3 450 Fuel 1 495 Printing and stationery 1 564 Purchases (note 5) 160 245 Salaries 48 000 Rentals (note 6) 13 294 Additional information:

1. The indemnity award of R51 750 was received by Val Kilmer from his insurer for two expensive watches that were stolen from his shop.

2. Bad debts of R13 225 written off by Val Kilmer, comprising the following: R10 350 owing by one of his long-standing customers, from a credit sale. This customer has since emigrated and he has been unable to trace her. R2 875 was lent by him to an employee, who left town without repaying the loan.

3. Depreciation (for the two-month tax period) is charged for the following assets owned Val Kilmer: Manufacturing equipment that was purchased by him in a previous tax period for R276 000 (R240 000 plus value-added tax of R36 000) 8 000 A computer that was purchased by him on 1 August 2022 for R14 375 (R12 500 plus value-added tax of R1 875) 695 A motor car that was purchased by him on 1 September 2022 for R632 500 (R550 000 plus value added tax of R82 500). He has the sole use of it. (He maintains accurate records of his travelling and can prove that his business travelling is 40% of his total travelling.) 10 450 19 145

4. Val Kilmer insurance premiums of R3 450 were incurred for the following assets that belong to him: Manufacturing equipment 460 Office computer 230 Motor car 1 035 Trading stock 1 725 3 450

5. Val Kilmer purchases of R160 245 are made up as follows: Purchases of raw materials from vendors 126 500 Second-hand watches purchased (and paid for) from non-vendors 16 675 Second-hand watches purchased from vendors 17 250 160 425 Val Kilmer purchases second-hand watches from both vendors (for example, auctioneers) and from nonvendors (for example, private individuals and deceased estates). He displays and sells secondhand watches in his shop.

6. Val Kilmer rentals of R13 294 are for the following items: Shop premises 10 925 Cash register 1 495 Tea urn (located in the shop for his employees and himself to make tea) 874 13 294

7. Two overseas air tickets costing R5 800 purchased by Val Kilmer were given to an employee and his wife as part of the employees salary package.

8. Assume a 15% vat rate.

YOU ARE REQUIRED TO determine the value-added tax due to, or from, SARS for Val Kilmers two-month tax period that ended on 30 September 2022