You are a tax consultant at TaxMasters $($Pty$)$ Ltd $($TaxMasters$)$ which provides tax

services to small and medium$-$sized businesses. Pearl Lewis, a client of TaxMasters,

has requested tax advice from your firm and you have been appointed to assist her.

Pearl owns a duplex building in Cape Town, which she purchased in January $2020$

from a VAT vendor for R$2000000.$ She used the ground floor for her beauty salon,

Pearl Glamour $($Pty$)$ Ltd $.$ Pearl and her husband used the upper floor as their living

space.

SARS has accepted that $50\%$ of the building pertains to the beauty salon.

Pearl decided to sell the building for R$2500000.$ She found a buyer and sold the

building on $1$ August $2023,$ the buyer settled the full purchase price in cash on the

same date. The building was registered in the name of the buyer on $15$ September

$2023.$

REQUIRED:

Discuss all the VAT consequences for Pearl Lewis.

Your discussion should include the value and timing rules with a clear explanation

and reference to the VAT Act to support your answer.

Clearly distinguish between output tax and input tax.

Round to the nearest rand.