Page 57 - ADVANCED TAXATION - Day 1 Slides

Solution

 Mr Strempel would have initially paid VAT of R413

(R3 363 × 14/114) when purchasing the giraffe

figure from the curio store. The curio store, being a

VAT vendor, needs to charge the output tax of R413

and pay it over to SARS. Upon leaving the country

with the wooden giraffe, Mr Strempel can have the
VAT of R413 refunded to him. SARS needs to refund

this amount on Mr Strempel’s departure with the

item purchased in South Africa, as it is regarded as

being an indirect export in terms of the Export

Incentive Scheme.