VAT Quiz

Mr X purchased a second hand coffee table from a VAT vendor for R2000 on 01 December 2024. Mr X is a category B VAT vendor registered on the invoice basis. He paid 50% on 15 January 2025 and the remaining 50% on 14 February 2025. When can Mr X claim input tax?

• Mr X can claim input tax on 01 December 2024.

• Mr X can claim notional input to the extent that payment has been made.

• Mr X can claim notional input tax in the Tax period ending 28 February 2025.

• Mr X can claim input tax on 14 February 2025 only.

Answer explanation

The coffee table was purchased from a VAT vendor thus VAT was originally levied, no notional input tax had to be claimed. Mr X is registered on the invoice basis, in terms of s9(1)(a) the time of supply is the earlier of invoice or payment.

An employer provides residential accommodation in terms of par 9 of the 7th schedule to an employee, the employer can levy deemed output tax on the fringe benefit in terms of s18(3)

• TRUE

• FALSE

Answer explanation

s18(3) proviso. N/A to exempt supplies, zero rated and entertainment

A single cab light delivery vehicle is a motor car as defined in s1 of the VAT ACT

• TRUE

• FALSE

Mr X acquires a second hand lawn mower from a non-vendor for R 1 500 and claimed notional input tax. When Mr X subsequently sells the lawnmower to a non-resident in China (direct export) for R3 000....

• The export is zero rated in terms of s11(a)

• Output tax is levied on R3 000 in terms of s7(1)(a)

• Output tax is levied on R1 500 in terms of s10(12)

Financial services physically performed in an export country are...

• Exempt in terms of s12a

• Standard rated in terms of s7(1)(a)

• Zero rated in terms of s11(2)(k)

Tick the correct boxes in respect of Imported goods:

• OUTPUT Vat is levied on imported goods

• VAT is levied as a reverse charge

• The taxpayer may claim input tax on VAT paid

• BLNS countries don't pay customs

• VAT is levied when goods are cleared for home consumption

Mr X acquired second hand property from a non-vendor for R800 000. Mr X paid consideration on 15 January 2025 and the property was registered in Mr X's name on 01 March 2025 what is the time of supply?

• Date consideration was paid

• To the extent that payment has been made

• Date of registration at deeds registry

Answer explanation

In terms of s16(3)(a)(ii)(bb)(A), second hand fixed property input tax can only be claimed to the extent that the property has been registered in the name of the vendor. Regardless of the provisions of s9(3)(d)

If an employer provides a microwave oven for the staff room the following is TRUE:

• Employer can claim input as it is purchased in the course of his enterprise

• Input tax is denied

• It constitutes entertainment

What are the main requirements of VAT Registration ?

• Resident of the Republic

• Carrying on an enterprise

• Commercial accommodation exceeding R120 000

• Taxable supplies exceeding R1 million

A company in China (Delta IT) provides IT services to many South African registered Companies for a fee of R200 000 per year. Is Delta liable to register for VAT in SA?

• YES

• NO

Answer explanation

Electronic Services. " Enterprise definition par b) iv)