Page 119 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

Example

Ohno recently experienced flooding of the ground floor at the

premises rented from Agnee CC.

Ohno’s insurance company replaced the following items:

 Computers R48 000

 Desks and chairs R80 000

 Cupboards R12 500

Their insurance company also reimbursed Ohno in cash for

other losses suffered as follows:

 Fittings R93 600

The insurance company also paid Agnee CC for damages

suffered amounting to R36 000.

Calculate the output tax in respect of the insurance
payments and replacements.