Overview of Value-Added Tax (Grade 10 NSC Matric Accounting): Flashcards
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VAT Act number and year in South Africa
VAT Act number and year in South Africa
Value-Added Tax Act 89 of 1991
Date VAT came into effect in South Africa
Date VAT came into effect in South Africa
30 September 1991
Definition of Output Tax
Definition of Output Tax
VAT charged when selling goods or providing services
Where output tax must be paid to
Where output tax must be paid to
South African Revenue Service (SARS)
Definition of Input Tax
Definition of Input Tax
VAT paid when purchasing goods or services from suppliers
Requirement to claim input tax from SARS
Requirement to claim input tax from SARS
Must have a proper tax invoice from supplier
Basic VAT calculation formula
Basic VAT calculation formula
When output tax > input tax, you...
When output tax > input tax, you...
Owe money to SARS (amount payable)
When input tax > output tax, SARS...
When input tax > output tax, SARS...
Owes you money (amount refundable)
Who ultimately bears the VAT burden?
Who ultimately bears the VAT burden?
The final consumer