Page 146 - ADVANCED TAXATION - Day 1 Slides

Solution

Step 1: R35 000 (determined value already excludes VAT)

Step 2: R35 000 × 0,6% = R210

Step 3: R210 – Rnil = R210

 No deduction for fuel – zero-rated (note)

Step 4: R210 × 14/114 = R25,79

Step 5: R25,79 × 60% = R15,47

 Note

The fact that the employee also pays for the fuel does not give rise to

another output tax, because it is a zero-rated supply.