Page 103 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

Example (suspensive-sale agreement)

Assume the same information as in the previous

example, except that it is now a delivery vehicle

acquired in terms of a suspensive-sale agreement,

which provides for a deposit of R14 000 payable on

15 May of the current tax year.

The monthly instalments are R3 675, and finance

charges totalling R34 300 will be paid over the 36-

month period.

Discuss the VAT implications of the above

transaction.