In September 2021, Hoousedown (Pty) Ltd bought paint to be used to paint the exterior of its building for R23 940 (R21 000 plus value-added tax at 15% of R2 940) from a local supplier. It enjoyed an input tax deduction of R1 176 (40% of R2 940) in its tax period 1 September 2021 to 31 October 2021. It encountered quality problems with this paint, and paid the supplier only R17 955 (R15 750 plus valueadded tax of R2 205) on 31 October 2021. It refused to settle this account until the quality problems were resolved. On 1 October 2022, R5 985 (R5 250 plus value-added tax of R735) was still outstanding, despite numerous letters of demand having been received from its supplier.

YOU ARE REQUIRED TO determine the value-added tax due to, or from, SARS for Hoousedown (Pty) Ltd's twomonth tax period that ended on 31 October.

Answer rating: 100% (QA)

To determine the valueadded tax due to or from SARS for Hoousedown Pty Ltds twomonth tax period that ... View the full answer