Page 6 - F6 Slide - VAT Part 2 - Lecture Day 5
P. 6
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.
