Page 114 - ADVANCED TAXATION - Day 1 Slides

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.