QUESTION $1[22$ MARKS$]$

BN Ltd is a packaging business. All amounts are Vat inclusive, where applicable. The following

information relates to the $2-$month tax period of August and September $2022.$

INCOME

Sales $865000$

Sales: Australia $125000$

Rent received: Residential supply $14000$

Interest received $22000$

Fee from consulting service $15675$

EXPENSES

Wages $25000$

Petrol $18000$

Bad debts $42000$

Telephone $36000$

Water and Electricity $24000$

Importation of good from Zimbabwe $150000$

Customs Duty $6000$

Purchase of factory building from non$-$vendor $65000$

Purchase of raw material $115000$

Purchase of water bottles $2000$

Cost of new motor car for general use in business $186500$

Calculate the VAT payable or refundable for the period of August and September $2022.$

$($Note: IF VAT IS NOT APPLICABLE, PLEASE PROVIDE REASONS$)$

Round off to two $(2)$ decimal places.