Page 39 - ADVANCED TAXATION - Day 1 Slides

Solution

Provided Speedy acquired the printer for the purposes of

making taxable supplies, he will be able to claim an input
tax deduction on the acquisition of the printer

amounting to R847,37 (R6 900 × 14/114). No input tax
will be claimable on the acquisition of the motor car and

coffee machine, as input tax deductions are specifically
denied on the acquisition thereof.

Speedy will be required to levy output tax on the sale of
only the printer, since the said supply will be made in the

course or the furtherance of his enterprise. Speedy will
not be required to account for any output tax on the sale

of the coffee machine and motor car, since Speedy was
denied input tax deductions on the acquisition of these

items.