VAT in context (TXA201)

VAT is a tax on:

• Wealth

• Income

• Profits

• Consumption

Which of the following item/s represent taxable supplies:

• Standard rated supplies

• Zero-rated supplies

• Exempt supplies

• None of the given options

Which of the following term/s imply that the amount includes VAT:

• Open market value

• Consideraton

• Value of supply

• None of the given options

Input tax is:

• An amount claimed by a vendor

• An amount raised / levied by a vendor

• VAT charged on goods and services supplied by a vendor

• The VAT incurred in respect of goods or services supplied to a vendor

If an amount includes VAT, to calculate the VAT amount you need to:

• x 15%

• x 15/115

• x 100/115

• / 1.15

The amounts shown in the financial statements of a company:

• Include VAT

• Exclude VAT

What type of supply is the supply of electricity by a municipality?

• Standard rated

• Zero-rated

• Exempt

• Not a supply

What type of supply is the monthly rental charged on a 1-bedroomed flat?

• Standard rated

• Zero-rated

• Exempt

• Not a supply

What type of supply is interest earned on a bank account?

• Standard rated

• Zero-rated

• Exempt

• Not a supply

What type of supply is the sale of a bus ticket for the transport of passengers and their luggage between Durban and Pretoria?

• Standard rated

• Zero-rated

• Exempt

• Not a supply