Page 14 - F6 Slide - VAT Part 4 - Lecture Day 5

Solution

Ohno is not required to account for output tax on the

replacements by the insurance company, since these

replacements are not payments in money.

With regard to the fittings on which input tax could be

claimed in the past, output tax of R11 495

(R93 600 × 14/114) must be accounted for.

Ohno is indemnified by the payment of an amount of

money to a third party and must account for output tax

of R4 421 (R36 000 × 14/114).