Page 15 - F6 Slide - VAT Part 5 - Lecture Day 5
P. 15
Solution
Year 1: A × B × C
= 14/114 × 86 700 × 15% (80% – 65%)
= R1 597 (input tax adjustment)
Year 2: A × B × C
= 14/114 × 86 700 × 22% (80% – 58%)
= R2 342 (output tax adjustment)
Year 3: A × B
= 14/114 × R102 600 (market value for s 18(1))
= R12 600 (output tax adjustment)
Section 16(3)(h) – additional input
= A × B × C
= 14/114 × 86 700 × 42% (100% – 58%)
= R4 472 (input tax adjustment)
