Page 38 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1
P. 38

Solution









         The in-bond sale of the golfing equipment will be zero-rated.


         The VAT levied on importation will be the greater of


                                                                                                            R


         Customs duty value                                                                   250 000

         Add: 10% of customs duty value                                                                     25 000


         Add: Importation surcharges                                                                            7 400


                                                                                                            282 400


         Or


         The consideration of the in-bond supply 300 000


         × 15%

         VAT levied on importation                                                            45 000
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