The Scenario
A small IT consulting company is registered for VAT (standard rate 15%). In March, they invoiced R460,000 (incl. VAT) to clients and received R172,500 (incl. VAT) in supplier invoices. The owner needs to know how much to pay SARS.
The Brief
Calculate the VAT output tax, VAT input tax, and net VAT payable. Show your working clearly.
Deliverables
- VAT output calculation: extracting VAT from the inclusive client invoices
- VAT input calculation: extracting VAT from the inclusive supplier invoices
- Net VAT payable to SARS with the formula clearly shown
- One common VAT error small businesses make and how to avoid it
Submission Guidance
R460,000 inclusive of VAT is not R460,000 × 15%. The VAT fraction is 15/115. Show that you understand this.
Submit Your Work
Your submission is graded against the rubric on the right. If you pass, you get a public Badge URL you can share on LinkedIn. There is no draft save, so work offline first and paste your finished response here.