Page 136 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

Solution

Step 1: R35 000 (determined value already excludes VAT)

Step 2: R35 000 × 0,6% = R210

Step 3: R210 – Rnil = R210

 No deduction for fuel – zero-rated (note)

Step 4: R210 × 15/115= R27,39

Step 5: R27,39 × 60% = R16,43

 Note

The fact that the employee also pays for the fuel does not

give rise to another output tax, because it is a zero-rated

supply.