Page 168 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

The influence of VAT on income tax calculations

 VAT cannot be studied in isolation, because it

influences the calculations involved in income tax.

 The calculation of the taxable income of an

enterprise that is registered for VAT purposes must

exclude VAT. It will include VAT where the input

tax was denied.

 Output tax on fringe benefits is deductible for

income tax purposes.