Page 27 - F6 Slide - VAT Part 5 - Lecture Day 5

The Influence Of VAT On Income Tax Calculations

 VAT cannot be studied in isolation, because it

influences the calculations involved in income tax.

 The calculation of the taxable income of an

enterprise that is registered for VAT purposes must

exclude VAT. It will include VAT where the input

tax was denied.

 Output tax on fringe benefits is deductible for

income tax purposes.