Page 104 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

Solution (suspensive-sale agreement)

 The only difference is that the bank now has to

account for output tax of R14 609 (R112 000 ×

15/115) on 15 May. This is also the date on which the

manufacturer can claim the input tax of R14 609,

assuming that the delivery vehicle will be used

exclusively to make taxable supplies.

 With regard to a suspensive-sale agreement, when a

deposit is paid, it is immediately applied in reducing

the total consideration due.