Page 120 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

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 R12 209

(R93 600 × 15/115) 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 696 (R36 000 × 15/115).