Page 33 - F6 Slide - VAT Part 3 - Lecture Day 5

Solution (Suspensive-sale Agreement)

 The only difference is that the bank now has to

account for output tax of R13 754 (R112 000 ×

14/114) on 15 May. This is also the date on which the

manufacturer can claim the input tax of R13 754,

assuming that the delivery vehicle will be used

exclusively to make taxable supplies.

 With regard to a suspensive-sale agreement, when a

deposit is paid, it is immediately applied in reducing

the total consideration due.