VAT
Question 1 (VAT-calculations; 20 marks, 10 minutes)
You are provided with information regarding Vusi Stores.
REQUIRED:
1.1 Use the table provided to determine the amount for VAT payable to SARS regarding the
transactions which occurred during May 2018. Indicate in each instance whether it is input-
tax which can be claimed back or whether it is output-tax which must be paid over to SARS.
Calculate in the end the net amount payable to SARS. (20)
INFORMATION:
1. All amounts include VAT of 14%.
2. When stock is returned to creditors, the input-tax which can be claimed back will decrease.
3. When stock is returned by debtors, the output-tax payable to SARS will decrease.
4. The following transactions occurred during May 2018:
Amount
Transaction (VAT inclusive)
Trading stock bought for cash R41 040
Stock bought on credit 63 840
Stock returned to creditors 6 954
Stock taken by the owner for personal use 2 850
Cash sales of stock 291 840
Credit sales of stock 214 320
Stock returned by debtors 25 080
Bad debts written off 13 110
Amount VAT- input VAT-output
Transaction (VAT inclusive)
Trading stock bought for cash R41 040
Stock bought on credit 63 840
Stock returned to creditors 6 954
Stock taken by the owner 2 850
Cash sales of stock 291 840
Credit sales of stock 214 320
Stock returned by debtors 25 080
Bad debts written off 13 110
Totals for VAT-input and VAT-output
Net amount payable to SARS
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VAT
Question 2 (VAT-theory and calculations, 20 marks; 12 minutes)
The information provided concerns Zoid Stores for April 2018.
REQUIRED:
2.1 Explain the difference between VAT-input and VAT-output. (4)
2.2 Calculate the amount for VAT-input. (7)
2.3 Calculate the amount for VAT-output. (6)
2.4 Determine the net amount payable to SARS regarding VAT on 30 April 2018. (3)
INFORMATION:
1. The rate at which VAT is being charged is 14%.
2. The following transactions regarding VAT occurred during April 2018:
Transactions VAT exclusive VAT inclusive
Stock bought on credit 560 000
Equipment bought and paid for by cheque 364 800
Sale of stock for cash 490 000
Stock returned by clients 15 200
Discount allowed to debtors 1 710
Withdrawal of stock by the owner 9 300
Bad debts 6 840
Stationery bought on credit 14 300
Sale of stock on credit 980 400
Discount received from creditors 3 000
Stock returned to creditors 28 500
2.1 Explain the difference between VAT-input and VAT-output.
2.2 Calculate the amount for VAT-input.
2.3 Calculate the amount for VAT-output.
2.4 Determine the net amount payable to SARS regarding VAT on 30 April 2018.
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VAT
Question 3 (VAT-calculations; 15 marks, 9 minutes)
The following information concerns Donald Traders regarding September 2018.
REQUIRED:
3.1 Use the table provided to determine the amount of VAT payable to SARS regarding
transactions which occurred during September 2018. (15)
INFORMATION:
1. All amounts include VAT at a rate of 14%.
2. The following transactions occurred in the records of Donald Traders during September 2018:
Amount
Transaction (VAT inclusive)
Stock bought for cash R78 660
Stock bought on credit 71 136
Equipment bought on credit 41 040
Stock returned to creditors 6 156
Discount received from creditors 4 788
Stock withdrawn by owner for personal use 2 736
Cash sales of trading stock 165 300
Credit sales of trading stock 151 620
Stock returned by debtors 13 680
Discount allowed to debtors 1 824
Bad debts written off 4 674
Amount VAT – VAT -
Transaction (VAT inclusive) input output
Stock bought for cash R78 660
Stock bought on credit 71 136
Equipment bought on credit 41 040
Stock returned to creditors 6 156
Discount received from creditors 4 788
Stock withdrawn by owner for personal use 2 736
Cash sales of trading stock 165 300
Credit sales of trading stock 151 620
Stock returned by debtors 13 680
Discount allowed to debtors 1 824
Bad debts written off 4 674
Totals for VAT-input and VAT-output
Net amount payable to SARS
VAT3
VAT
Question 4 (VAT-calculations; 12 marks, 7 minutes)
You are provided with information from the financial records of Bafana Traders.
REQUIRED:
4.1 Determine the amount for VAT payable to SARS on 30 June 2018. (10)
4.2 SARS launched an investigation regarding the previous VAT-return submitted by the
business. They informed the business of deposits amounting to R120 000, which
appeared on the bank statement, were not declared as sales. Provide TWO examples of
items which are excluded from being taxed with VAT. (2)
INFORMATION:
1. The VAT-rate is 14%.
2. The following amounts concern transactions which occurred during Junie 2018:
VAT – return amounts for June 2018
Total cash- and credit sales (VAT exclusive) 786 000
Total purchases (VAT inclusive) 478 800
Total returns to creditors (VAT inclusive) 27 360
New vehicle purchased for cash (VAT inclusive) 182 400
4.1 Determine the amount for VAT payable to SARS on 30 June 2018.
4.2 Provide TWO examples of items which are excluded from being taxed with VAT.
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VAT
Question 5 (VAT-calculations; 20 marks, 12 minutes)
You are provided with information regarding Galant Stores for May 2018.
REQUIRED:
5.1 Calculate the amount for VAT-input. (8)
5.2 Calculate the amount for VAT-output. (8)
5.3 Determine the net amount for VAT payable to/receivable from SARS on 31 May 2018. (4)
INFORMATION:
1. VAT is being charged at the standard rate of 14%.
2. The following transactions for May 2018 appeared in the records of Galant Stores:
Transactions VAT exclusive VAT inclusive
Stock bought on credit 820 000
Equipment bought and paid for by cheque 980 400
Sale of stock for cash 360 000
Stock returned by clients 6 400
Discount allowed to debtors 2 622
Withdrawal of stock by the owner 7 300
Bad debts 6 555
Stationery bought on credit 34 000
Sale of stock on credit 296 400
Discount received from creditors 3 100
Stock returned to creditors 13 224
5.1 Calculate the amount for VAT-input.
5.2 Calculate the amount for VAT-output.
5.3 Determine the net amount for VAT payable to/receivable from SARS on 31 May 2018.
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VAT
Question 6 (VAT concepts and calculations; 15 marks, 9 minutes)
You are provided with information regarding Boris Traders. The business makes payments
regarding VAT to SARS every two months.
REQUIRED:
6.1 What does the abbreviation VAT stand for? (2)
6.2 What is the VAT-rate being charged on necessities such as brown bread, milk and fresh
fruit and vegetables? (2)
6.3 What is the current standard rate at which VAT is being charged in South-Africa? (2)
6.4 Determine the final amount for VAT payable to SARS on 31 July 2018? (9)
INFORMATION:
Transactions for July 2018 VAT inclusive VAT exclusive VAT amount
Balance owed to SARS on 1 July 2018 17 800
Cash- and credit sales invoices issued 1 048 800
Purchases of trading stock 624 000
Defective stock returned to suppliers 19 266 16 900
Discount allowed to debtors for early payment 18 000
Equipment purchased 165 300
Credit notes issued to debtors 44 346
Discount received from creditors for timely payments 9 804
Withdrawal of stock by the owner 24 000
Bad debts 16 530
6.1 What does the abbreviation VAT stand for?
6.2 What is the VAT-rate being charged on necessities such as brown bread, milk and fresh fruit and vegetables?
6.3 What is the current standard rate at which VAT is being charged in South-Africa?
6.4 Determine the final amount for VAT payable to SARS on 31 July 2018?
VAT6
