Page 148 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1
P. 148
Solution
Output tax adjustment is equal to the tax fraction multiplied
by open-market value 234,78
= 15/115 × R1 800
If Fanie originally acquired the lawnmower for making only
55% taxable supplies, the VAT consequences would have
been as follows:
Output tax = 15/115 × R1 800 (s 18(1)) 234,78
Input tax = 15/115 × R1 000 × 45% (non-taxable use) (s
16(3)(h)) 58,70
