The following relates to a manufacturing company that operates in the Western Cape. - It is a registered vendor for Value-Added Tax (VAT) purposes - It imports specialised raw materials from Austria on a regular basis to be used in the manufacturing process. - It also sources various raw materials locally. - SARS has approved an apportionment ratio of 90% for input tax where input tax relates to both taxable and exempt supplies. The following financial information relates to the one-month tax period ending 31 October 2021. All amounts exclude VAT unless specifically stated otherwise. 1. Sales (total tax invoices) – R9 150 500 - The total tax invoices issued for October 2021 amounted to R9 150 500. Only R6 215 600 of this amount was received in October 2021. - A tax credit note for an amount of R27 600 (including VAT) was issued on 23 October 2021 to a client who returned damaged products sold to the client on 11 October 2021. 2. Fees received from in-house day care facility operated by the company for the benefit of the employees – R187 500 - Employees are charged a small fee for their children to attend the in-house day care facility (nursery school). 3. Raw materials imported from Austria – R? The customs duty value of the raw materials was R2 375 400 and the import surcharges were R74 900. 4. Raw materials sourced locally – R4 500 720 All raw materials (purchased locally and internationally) are used solely for the making of taxable supplies. 5. Insurance paid – R8 299 - For day care facility (nursery school). 6. Purchase of second-hand industrial production equipment – R400 200 - Purchased from a local non-vendor on 22 October 2021 for a total amount of R750 000. - An amount of R400 200 was paid on 31 October 2021 and the remaining balance on 25 November 2021. 7. Bank Charges – R12 500 These only relate to the manufacturing operations of the enterprise. 8. Electricity – R140 070 The electricity paid was for both the day care facility and the manufacturing plant and includes VAT. REQUIRED: MARKS Calculate the VAT payable by/refundable to company that should be declared on the VAT201 return for the one-month tax period ending on 31 October 2021. Clearly show Output and Input VAT. Should no VAT be applicable, provide a reason. 1

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VAT Payable byRefundable to Company The amount of VAT payable byrefundable to the company for the onemonth tax period ending 31 October 2021 can be ca... View the full answer