Page 157 - ADVANCED TAXATION - Day 1 Slides

Example

Fanie Greenfinger purchased ten lawnmowers to be
sold in his nursery. Each lawnmower cost him R1 000

(including VAT). At the time of purchase, he intended

to sell the lawnmowers in the course of his business

and claimed input tax of R122,81 (R1 000 × 14/114)
per lawnmower. Fanie decided to take one of the

lawnmowers for his own private use in his garden at

home. Fanie usually sells the lawnmowers for R1 800
each (including VAT).

Calculate the output tax.

How would your answer differ if Fanie originally
acquired the lawnmower for making 55% taxable

supplies?