QUESTION $1(25$ marks, $45$ minutes$)$

Fast Move Courier $($Pty$)$ Ltd $($FMC$)$ is a courier company with its head office in Johannesburg,

South Africa, and courier depots in all the major cities in South Africa. FMC provides courier ser$-$

vices in South Africa, Namibia, and Botswana. FMC is a registered VAT vendor, and its two$-$

month VAT period ends on $29$ February $2024.$ The following is a summary of the VAT transactions

for the two$-$month VAT period that ended on $29$ February $2024($all amounts include VAT at $15\%$

unless specified otherwise$)$: Notes

Insurance payment received

FMC received an insurance claim payment from its insurance company on $18$ February $2024$ for

an amount of R$258750.$ The payment received was for the following claims:

R$252500$ for a delivery vehicle that was damaged beyond repair in an accident in Cape

Town, South Africa. FMC used the insurance payment to purchase a new delivery vehicle

on $21$ February $2024$ for an amount of R$281750.$

R$6250$ for a microwave oven used in the staff canteen that was damaged during a

loadshedding surge in the electricity supply to the canteen. A new microwave oven was

purchased on $23$ February $2024$ for an amount of R$8625.$

Motor vehicle purchased

FMC purchased a new double cab bakkie for an amount of R$373750$ on $2$ January $2024$ for the

sole use of the marketing manager to visit new clients. The marketing manager had full use of the

new double cab bakkie from $2$ January $2024,$ and FMC pays for all the running costs of the bakkie.QUESTION $1($continued$)$

Advertising and marketing

FMC embarked on an aggressive advertising and marketing campaign by rebranding all the

vehicles in its courier fleet. The R$70725$ was paid on $15$ January $2024$ to Branding Specialists

$($Pty$)$ Ltd$.$

Legal fees

FMC paid R$2070$ in legal fees to JET Attorneys on $19$ February $2024$ for legal fees relating to a

private matter involving one of the employees of FMC$.$

Purchase of a property

FMC purchased a second$-$hand property from a non$-$vendor on $31$ January $2024$ for an amount

of R$1750000,$ which was fully paid on $17$ February $2024$ to the seller. FMC also paid an amount

of R$26625$ in transfer duty on $31$ January $2024,$ which is not included in the purchase price.

Calculate the VAT payable by or refundable to Fast Move Courier $($Pty$)$ Ltd for the

two$-$month VAT period ended on $29$ February $2024.$ Please provide a reason if an

amount is not subject to output tax or when an input tax cannot be claimed.