Page 156 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1
P. 156
Solution
Year 1: A × B × C
= 14/114 × 86 700 × 15% (80% – 65%)
= R1 696,30(input tax adjustment)
Year 2: A × B × C
= 15/115 × 86 700 × 22% (80% – 58%)
= R2 488 (output tax adjustment)
Year 3: A × B
= 15/115 × R102 600 (market value for s 18(1))
= R13 382 (output tax adjustment)
Section 16(3)(h) – additional input
= A × B × C
= 15/115 × 86 700 × 42% (100% – 58%)
= R4 750 (input tax adjustment)
