QUESTION $3$

Ella Traders is registered for VAT, afthough the annual turnover is less than R$1000000.$ The standard VAT rate is $15\%.$ The business is owned by Ella Elits.

REQUIRED:

$3\mathrm{.}1$ Give TWO reasons why Ella decided to register for VAT.

$(2)$

$3\mathrm{.}2$ Ella uses the money collected for VA to pay business expenses. The business has insufficient cash to make the VAT payments on the due dates. State TWO different$/$separaterpoints you would point out to Ella.

$(4)$

$3\mathrm{.}3$ Calculate the amount of VAT that is payable to SARS for the two$-$month period ending $30$ May $2022.$

INFORMATION:

VAT$-$related transactions for the period ended $30$ May $2022$:

$\backslash$table$[[$Balance due by SARS on $1$ May $2022,$R$26000],[$Purchases of trading stock $($excluding VAT$),590000],[$Cash and credit sales $($including VAT$),874000],[$VAT on drawings of trading stock by Chuckles,$12000],[$VAT on returns from debtors,$28200],[$VAT on discounts received from suppliers,$33600]]$