Scribd
Upload
35 views

VAT Assignment Solution

The document is a VAT assignment that contains multiple choice and true/false questions testing understanding of key VAT concepts in South Africa. It covers what transactions VAT is charged on, the VAT percentage rate, zero-rated supplies, an example calculation of input and output VAT for a business, and definitions regarding VAT terms like consideration amount and exempt supplies.

Uploaded by

Jesus is Lord
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
35 views

VAT Assignment Solution

The document is a VAT assignment that contains multiple choice and true/false questions testing understanding of key VAT concepts in South Africa. It covers what transactions VAT is charged on, the VAT percentage rate, zero-rated supplies, an example calculation of input and output VAT for a business, and definitions regarding VAT terms like consideration amount and exempt supplies.

Uploaded by

Jesus is Lord
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

VAT Assignment

Chapter 8: VAT

1 VAT is charged on:


a. Entertainment
b. The supply of goods or services (transactions)
c. Transport

2 At which percentage is VAT levied in South Africa?


a. 10%
b. 11%
c. 15%

3 Zero-rated supplies form part of:


a. Exempt supplies
b. Standard-rated supplies
c. Transport supplies

Use the following scenario to answer Questions 4 to 6:

An entity (Ripoff International) purchases an item of inventory for R575 (including VAT) and sells the item for
R1 500 (excluding VAT). You may assume that Ripoff International is a registered VAT vendor.

4 The input VAT amount that can be claimed back is:


a. R50
b. R20
c. R75

5 The output VAT amount payable would be:


a. R225
b. R250
c. R184,21

6 What is the value of the cost of inventory when purchased and the value of the sale when the item is
sold?
a. R 570 and R 1 710
b. R500 and R 1,500
c. R570 and R1 684,21

State whether Questions 7 to 10 are true or false:

7 Zero-rated supplies are no different to exempt supplies.


a. True
b. False

8 Milk, brown bread and fuel are included in zero-rated supplies.


a. True
b. False
9 When preparing the statement of profit or loss, the amounts reflected under both expenses and income
will be the consideration amount of the item bought or sold.
a. True
b. False

10 VAT allocations are allowed on both services rendered and bad debts written off despite the latter not
being a supply of goods or services.
a. True
b. False

11 Match Column A to Column B:

Column A Column B
1 VAT is an a Reflected on VAT return
2 Two components of VAT b Includes VAT
3 VAT payable or receivable c Six
4 Total VAT categories d Exempt supplies
5 Consideration amount e Indirect tax
6 VAT prohibited f Input and output

Answers:
1&e
2&f
3&a
4&c
5&b
6&d

You might also like