QUESTION $4[20$ MARKS$]$

Very Demure Pty Ltd is an emerging clothing retailer. The company$$s $2030$ vision is to be a competitor for retailers such as Edgars and Woolworths. The strategy of Very Demure is to import clothing items from Asian retailers such as Temu and Shein in small quantities that do not exceed R$500$ at a time and resell these to customers.

The CEO Mrs$.$ Mindfull read an article in the Sunday Times business section about the changes in customs duty that SARS may be implementing soon. The board of directors feared that these changes would contradict the company strategy.

Mrs$.$ Mindfull has requested your assistance in analysing the impact of the possible changes. $(20)$

Write a report to the board of directors outlining what impact the new SARS rule will have on

VAT payable or refundable of Very Demure Pty $($Ltd$).$

Mark allocation:

$$ Report and Presentation $($including introduction$)(3)$

$$ Research $(5)$

$$ Explanation of impact on VAT $(8)$

$$ Conclusion $(2)$

$$ Language and grammar $(2)$