Page 155 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

Example

A vendor acquires capital goods or services partly (65%)

for the purposes of making taxable supplies for R86 700

(including VAT). The vendor claimed R7 350,65 as input

tax (R86 700 × 15/115 × 65%). The open-market value in

all cases is R102 600.

Year 1: The taxable percentage increases to 80%

Year 2: The taxable percentage reduces to 58% and

Year 3: The taxable percentage is 0%.

Calculate the adjustments to be made by the

vendor.