Page 147 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1
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Example
Fanie Greenfinger purchased ten lawnmowers to be sold
in his nursery. Each lawnmower cost him R1 000
(including VAT). At the time of purchase, he intended to
sell the lawnmowers in the course of his business and
claimed input tax of R122,81 (R1 000 × 14/114) per
lawnmower. Fanie decided to take one of the
lawnmowers for his own private use in his garden at
home. Fanie usually sells the lawnmowers for R1 800
each (including VAT).
Calculate the output tax.
How would your answer differ if Fanie originally
acquired the lawnmower for making 55% taxable
supplies?
