Page 29 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1
P. 29

Solution









         Provided Speedy acquired the printer for the purposes of


         making taxable supplies, he will be able to claim an input

         tax deduction on the acquisition of the printer amounting

         to R847,37 (R6 900 × 14/114). No input tax will be


         claimable on the acquisition of the motor car and coffee

         machine, as input tax deductions are specifically denied


         on the acquisition thereof.


         Speedy will be required to levy output tax on the sale of

         only the printer, since the said supply will be made in the

         course or the furtherance of his enterprise. Speedy will not


         be required to account for any output tax on the sale of the

         coffee machine and motor car, since Speedy was denied

         input tax deductions on the acquisition of these items.
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