VAT
Amahle Traders is registered for VAT - NSC Accounting - Question 1 - 2020 - Paper 2
Question 1
VAT
Amahle Traders is registered for VAT. The standard VAT rate is 15%.
REQUIRED:
1.1.1 Calculate the figures indicated by (a) to (d) in the table below. (9)
1.1.2... show full transcript
Worked Solution & Example Answer:VAT
Amahle Traders is registered for VAT - NSC Accounting - Question 1 - 2020 - Paper 2
Step 1
Calculate the figures indicated by (a) in the table below.
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Answer
To calculate the VAT amount included in the invoices received from suppliers:
extVATAmount=89ext,700−78ext,000=11ext,700
Step 2
Calculate the figures indicated by (b) in the table below.
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Answer
To calculate the VAT included in the discount received from suppliers:
Comment on this practice and provide Amahle advice.
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Answer
The practice of using VAT funds for personal or business expenses is unethical and violates tax regulations. This can lead to serious consequences, including penalties.
Advice to Amahle includes:
Maintain clear records and ensure that all VAT funds are used correctly in future.
Adhere strictly to submission deadlines and make timely payments to SARS to avoid penalties.
