VAT Accounting

Which of the following statements are true ?

• All businesses must register as Vat Vendors

• A business with a turnover of R 1 Million and above must be registered as a Vat Vendor .

• Only retailers must register for Vat.

• A business with a turnover of R500 000 and above must register as a Vat vendor .

Which of the following statements are correct ?

1.Vat is a form of an indirect tax.

2.Vat is aimed at affluent (rich) people only

3.When a business registers as a Vat vendor they automatically registered on the invoice basis

4.A business that is a registered Vat vendor can request to SARS to be on the payment/receipt basis.

• 0nly 1 is correct

• Only 1 and 2 are correct.

• All are correct except 2.

• Only 1 and 3 are correct.

The total of Mr Khan cash slip at the supermarket was R149,80(Inclusive of vat on vatable goods).This amount includes R9,50 worth of zero-rated items. Calculate the amount of Vat.

• R140,30

• R21,04

• R18,3

• R19,53

The total of Mr Khan cash slip at the supermarket was R149,80(Inclusive of vat on vatable goods).This amount includes R9,50 worth of zero-rated items. Calculate the amount EXCLUSIVE of vat.

• R140,30

• R130,26

• R122,00

• R172.27

Indicate which statements are correct.

1.According to the invoice basis Vat is due when the invoice is issued.

2.A vendor can claim back Vat in the event of bad debts

3.According to the receipt basis vat is due when cash is received either in full or part.

4.Fee income or service fee for services rendered is subject to Vat.

• Only 2 and 3 are correct

• only 1 ,2 and 4 are correct

• only 2 and 4 are correct

• all of the statements are correct

The selling price of item is R736 ( inclusive of vat) .The correct VAT amount is

• R96,00

• R110,40

• R640,00

• R138,00

The selling price of item is R736 ( inclusive of vat) .The mark-up on this product is 60% on cost. Calculate the COST PRICE ( exclusive of vat ) ?

• R103,04

• R460,00

• R391,00

• R400,00

Output vat is collected by a business when goods are sold ?

• true

• false

The calculation of salaries does not take vat into account ?

• true

• false

Tax ( Avoidance/ Evasion ) is illegal and punishable by law

• Avoidance

• Evasion