Page 123 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

Solution

R14 230 × 15/115× 40% = R742,43 output tax payable

to SARS BB Bank’s output tax liability is apportioned

according to 40% taxable supplies made. With the

initial purchase of the computer as well as with the

monthly insurance premiums paid, BB Bank was only

entitled to 40% of the input tax.