QUESTION TWO $[45]$

Kyle Naidoo, a resident of the Republic, sells and repairs household appliances from a shop he leases in a local shopping centre. Kyle operates a sole proprietor and is registered for VAT on the invoice basis. He makes solely taxable supplies.

An analysis of Kyle's income and expenditure for the two$-$month tax period ending $28$ February $2023$ is set out below. Unless otherwise stated, all amounts are inclusive of VAT, where applicable. All transactions are with registered VAT vendors, unless otherwise stated.

$\begin{array}{cc}?& R\\ \text{I}\text{n}\text{c}\text{o}\text{m}\text{e}& ?\\ \text{S}\text{a}\text{l}\text{e}\text{s}of\text{a}\text{p}\text{p}\text{l}\text{i}\text{a}\text{n}\text{c}\text{e}\text{s}& 241500\\ \text{R}\text{e}\text{p}\text{a}\text{i}\text{r}\text{s}of\text{a}\text{p}\text{p}\text{l}\text{i}\text{a}\text{n}\text{c}\text{e}\text{s}& 26450\\ \text{I}\text{n}\text{t}\text{e}\text{r}\text{e}\text{s}\text{t}& 2415\\ \text{I}\text{n}\text{d}\text{e}\text{m}\text{n}\text{i}\text{t}\text{y}\text{a}\text{w}\text{a}\text{r}\text{d}(note1)& 23000\\ ?& ?\\ \text{E}\text{x}\text{p}\text{e}\text{n}\text{d}\text{i}\text{t}\text{u}\text{r}\text{e}& ?\\ \text{B}\text{a}\text{d}\text{d}\text{e}\text{b}\text{t}\text{s}(note2)& 10350\\ \text{B}\text{a}\text{n}\text{k}\text{c}\text{h}\text{a}\text{r}\text{g}\text{e}\text{s}& 805\\ \text{D}\text{e}\text{p}\text{r}\text{e}\text{c}\text{i}\text{a}\text{t}\text{i}\text{o}\text{n}(note3)& 4025\\ \text{I}\text{n}\text{s}\text{u}\text{r}\text{a}\text{n}\text{c}\text{e}\text{p}\text{r}\text{e}\text{m}\text{i}\text{u}\text{m}\text{s}(note4)& 3680\\ \text{F}\text{u}\text{e}\text{l}& 020\\ \text{P}\text{r}\text{i}\text{n}\text{t}\text{i}\text{n}\text{g}\text{a}\text{n}\text{d}\text{s}\text{t}\text{a}\text{t}\text{i}\text{o}\text{n}\text{e}\text{r}\text{y}& 1265\\ \text{P}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{s}(note5)& 93150\\ \text{S}\text{a}\text{l}\text{a}\text{r}\text{i}\text{e}\text{s}& 28450\\ \text{R}\text{e}\text{n}\text{t}\text{a}\text{l}\text{s}(note6)& 30536\end{array}$

Notes

The indemnity award of R$23000$ was received from Kyle's insurer for trading stockthat was stolen from his shop in January $2023$ when he had a break$-$in$.$

Bad debts of R$10350$ were written off, comprising of: R$7130$ owing by a long$-$standing customer on a credit sale. This customerhas since emigrated and Kyle has been unable to trace him.

R$3220$ was lent to an employee, who left town without repaying the loan.

Depreciation $($for the two$-$month tax period$)$ is charged for the following assets:

$\begin{array}{cc}?& R\\ \text{S}\text{h}\text{o}\text{p}\text{f}\text{i}\text{r}\text{t}\text{i}\text{n}\text{g}\text{s}\text{t}\text{h}\text{a}\text{t}\text{w}\text{e}\text{r}\text{e}\text{p}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{d}in\text{a}\text{p}\text{r}\text{e}\text{v}\text{i}\text{o}\text{u}\text{s}\text{t}\text{a}\text{x}\text{p}\text{e}\text{r}\text{i}\text{o}\text{d}\text{f}\text{o}\text{r}& 258\\ R3565& ?\\ \text{A}\text{c}\text{o}\text{m}\text{p}\text{u}\text{t}\text{e}\text{r}\text{t}\text{h}\text{a}\text{t}\text{w}\text{a}\text{s}\text{p}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{d}on1\text{J}\text{a}\text{n}\text{u}\text{a}\text{r}\text{y}2023\text{f}\text{o}\text{r}R11500& 417\\ \text{P}\text{e}\text{l}\text{i}\text{v}\text{e}\text{r}\text{y}\text{v}\text{a}\text{n}(single-\text{c}\text{a}\text{b}\text{b}\text{a}\text{l}\text{k}\text{c}\text{i}\text{e})\text{t}\text{h}\text{a}\text{t}\text{w}\text{a}\text{s}\text{p}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{d}on1& 3350\\ \text{F}\text{e}\text{b}\text{r}\text{u}\text{a}\text{r}\text{y}2023\text{f}\text{o}\text{r}R231150& ?\\ \text{T}\text{o}\text{t}\text{a}\text{l}\text{d}\text{e}\text{p}\text{r}\text{e}\text{c}\text{i}\text{a}\text{t}\text{i}\text{o}\text{n}& 4025\end{array}$

Insurance premiums are made up as follows:

$\begin{array}{cc}?& R\\ \text{S}\text{h}\text{o}\text{p}\text{f}\text{i}\text{t}\text{t}\text{i}\text{n}\text{g}\text{s}& 575\\ \text{C}\text{o}\text{m}\text{p}\text{u}\text{t}\text{e}\text{r}& 529\\ \text{D}\text{e}\text{l}\text{i}\text{v}\text{e}\text{r}\text{y}\text{v}\text{a}\text{n}& 736\\ \text{T}\text{r}\text{a}\text{d}\text{i}\text{n}\text{g}\text{s}\text{t}\text{o}\text{c}\text{k}& 1840\\ \text{T}\text{o}\text{t}\text{a}\text{l}\text{p}\text{r}\text{e}\text{m}\text{i}\text{u}\text{m}\text{s}& 3680\end{array}$

Purchases comprise as follows:

$\begin{array}{cc}?& R\\ \text{P}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{s}of\text{n}\text{e}\text{w}\text{t}\text{r}\text{a}\text{d}\text{i}\text{n}\text{g}\text{s}\text{t}\text{o}\text{c}\text{k}(all\text{f}\text{r}\text{o}\text{m}\text{r}\text{e}\text{g}\text{i}\text{s}\text{t}\text{e}\text{r}\text{e}\text{d}\text{v}\text{e}\text{n}\text{d}\text{o}\text{r}\text{s})& 70150\\ \text{S}\text{e}\text{c}\text{o}\text{n}\text{d}-\text{h}\text{a}\text{n}\text{d}\text{t}\text{r}\text{a}\text{d}\text{i}\text{n}\text{g}\text{s}\text{t}\text{o}\text{c}\text{k}-\text{p}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{d}\text{f}\text{r}\text{o}\text{m}\text{r}\text{e}\text{g}\text{i}\text{s}\text{t}\text{e}\text{r}\text{e}\text{d}\text{v}\text{e}\text{n}\text{d}\text{o}\text{r}\text{s}& 17250\\ \text{S}\text{e}\text{c}\text{o}\text{n}\text{d}-\text{h}\text{a}\text{n}\text{d}\text{t}\text{r}\text{a}\text{d}\text{i}\text{n}\text{g}\text{s}\text{t}\text{o}\text{c}\text{k}\text{p}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{d}(and\text{f}\text{u}\text{l}\text{l}\text{y}\text{p}\text{a}\text{i}\text{d}\text{f}\text{o}\text{r})\text{f}\text{r}\text{o}\text{m}& 5750\\ \text{n}\text{o}\text{n}-\text{v}\text{e}\text{n}\text{d}\text{o}\text{r}\text{s}& ?\\ \text{T}\text{o}\text{t}\text{a}\text{l}\text{p}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{s}& 93150\end{array}$

Rentals are for the following:

$\backslash$table$[[,$R$],[$Shop premises,$28750],[$Cash register,$1610],[\backslash$table$[[$Coffee machine $($located in the shop to make Kyle's employees$],[$and himself coffee$)]],176],[$Total rentals,$30536]]$

Required: Calculate the net VAT due to or refundable from SARS for the January$/$February $2023$ tax period. Use a VAT rate of $15\%.$ Round off to the nearest Rand and show ALL workings. Where there is a nil VAT effect, state a brief reason why. $(45$ marks$)$