Chapter 19: Value-added Tax Flashcards
1
Q
Value-Added Tax
A
A tax on goods and services used in the RSA.
Only people registered as VAT vendors are required to levy VAT on goods and services.
2
Q
VAT payable by or refundable to a vendor
A
The difference between output and input taxes.
3
Q
Output tax
A
The tax that the vendor charges on the delivery of goods or services in the execution of an operation.
4
Q
Input tax
A
The tax paid by the vendor in respect to goods or services delivered.
5
Q
The price paid for purchases includes/excludes VAT
A
includes
6
Q
VAT as percentage of price
A
VAT = 14/114 * price
7
Q
Accounts that are net of VAT
A
Expense, income and asset
8
Q
Accounts that include VAT
A
Debtors, creditors and bank
