Robert Smith, a professional artist has his own art studio. Robert offers art lessons and sells his
Fantastic news! We've Found the answer you've been seeking!
Question:
Robert Smith, a professional artist has his own art studio. Robert offers art lessons and sells his art at the studio and on Trade Me. Robert is registered for GST on a payment basis with a two-monthly filing frequency. Robert had the following transactions for the period ended 1 April to 31 May 2022. All figures are GST inclusive (where appropriate).
- Received rent for his residential investment property for April - $900.
- Received an invoice for art supplies purchased on credit - $3,680.
- Art sold on Trade me to overseas customers was $14,750 and to local customers was $20,250. These were all-cash sales.
- Provided art lessons and received payment - of $2,875.
- Billed a customer for art lessons - $575.
- Received an invoice for electricity of art studio which was paid - $184.
- Paid wages to part-time model - $1,200
- Received an invoice for canvas supplied, which was paid - $2,990.
- Received interest from the National Bank - $360.
- Paid rent for art studio - $1,840.
(a) Explain what zero rated supplies are and provide an example of a zero-rated supply made by Robert. Support you answer with appropriate references to GSTA 1985.
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date: