Page 53 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1
P. 53
Solution
Output tax
Sale of milk (zero-rated) nil
Input tax
Purchase of cows (R115 000 × 15/115) 15 000
Fuel (zero-rated) nil
Purchase of packing materials (R57 000 × 15/115)
7 435
Total input tax 22 435
An amount of R22 435 is to be refunded by SARS (Rnil – R22
435) (22 435)
Note
It should be clear from the example that although Mark Model made zero-
rated supplies, these supplies are also regarded as taxable supplies and that
he will still be able to claim the input tax incurred in making these supplies.
