Value-Added Tax (VAT)

Question 1

Type of VAT

Answer 1

Output or Input
normal, exempt or zero-rated

Question 2

Timing

Answer 2

Which VAT category are you in?

Question 3

Value

Answer 3

• Basis on which you apply
  Is there already VAT in the amount

Question 4

VAT Rate

Answer 4

15% on all taxable goods and services.

Question 5

registered vat VENDOR

Answer 5

Can claim VAT levied by a vendor back from SARS under certain conditions

Question 6

Imposition of Output:

Answer 6

All requirements as per section 7 of the VAT Act must be met:
Output VAT is levied on:
- the supply
- by any vendor
- of goods or services
- in the course or furtherance of an enterprise

Question 7

True or False
Output VAT cannot be levied on Kruger Rands

Answer 7

False, Kruger Rands are seen as goods, not money and as such it can be taxed.

Question 8

Registration of a VAT Vendor

Answer 8

Section 23 of the VAT Act
- compulsory registration s23(1)
- voluntary registration s23(3)
ONLY FOR VAT PURPOSES CAN A PARTNERSHIP REGISTER AS A PERSON FOR VAT.

Question 9

Voluntary registration:

Answer 9

1. total taxable supplies for previous 12 months > R50k
2. It is expected for point to occur.
3. Intention to carry on enterprise on a going concern basis for taxable supplies > R50k in previous 12 mths

Question 10

Compulsory VAT Registration:

Answer 10

1. total taxable supplies for previous 12 months exceeds R1 mil
2. Point one is obtained in terms of a contract
3. At the end of the month the supply of imported electronic services > R1 million for the previous 12 months.

Question 11

VAT Calculations

Answer 11

Amount of output VAT
less Amount of input VAT
+/- adjustments
= VAT refundable/due to SARS

Question 12

True or False
You say: output vat levied and input vat claimed

Answer 12

True

Question 13

Output Tax - Types of supplies

Answer 13

1. Exempt supplies (financial services, transport of fair paying passengers and their personal effects on the roads, education services, trade unions, supply of child care services)
2. taxable supplies (zero-rated and standard-rated supplies)

Question 14

Notes are incomplete stopped at types of supplies Output VAT