This paper consists of ten (10) pages and annexures (pp i–iv).
IMPORTANT INSTRUCTIONS:
1. South African Revenue Service = “SARS”
2. All persons mentioned are residents of the Republic unless stated otherwise.
3. "Republic" refers to the Republic of South Africa.
4. All amounts exclude VAT unless otherwise stated.
5. All questions must be answered. The paper consists of thirty five (35) multiple choice questions (MCQ).
6. Access the MCQ examination on myUnisa Assessment Info Tool using your PC, laptop, tablet or smart phone.
Honesty Declaration:
By submitting my MCQ exam solution, I declare that:
• I know what plagiarism is, that plagiarism is wrong and that disciplinary steps can be taken against me if I am
found guilty of plagiarism;
• This exam solution, submitted by myself, is my own work;
• I have not allowed any other student to copy my work and I have not had the assistance of any other person in
completing this exam;
• I know that if I am found to be in violation of this declaration I will receive 0% for this examination.
Please note: You do not have to submit the declaration. By submitting this solution, you automatically
declare that you adhere to all the above regarding the specific examination.Access & Submission instructions:
1. Go to myUnisa.
2. Log in with your student number and password.
3. Select the module.
4. Follow the instructions on the screen
2 TAX1501
May / June 2020
[TURN OVER]
The following information relates to VAT questions 1 – 8:
Jack B is a sole proprietor. He sells computers and all computer related products. He is a registered vendor for Value Added Tax (VAT) on the invoice basis. The following financial information
relates to the two-month tax period that ended on 29 February 2020.
All amounts exclude VAT (unless stated otherwise).
Income:  | R
Local sales  | 180 000
Direct export sales  | 52 500
Expenses:
New computers purchased from suppliers not registered for VAT  | 122 000
Locally purchased computer related products for export (VAT included)  | 64 000
Telephone  | 2 300
Fuel  | 6 800
Gifts for the family  | 4 0001. Calculate the VAT on local sales.
Output VAT of R27 000 (R180 000 x 15/100)
Input VAT of R27 000 (R180 000 x 15/100)
Input VAT of R23 478 (R180 000 x 15/115)
R0, it is a zero-rated supply
Output VAT of R25 200 (R180 000 x 14/100)
2. Calculate the VAT on direct export sales.
Output VAT of R7 875 (R52 500 x 15/100)
Output VAT of R6 848 (R52 500 x 15/115)
Input VAT of R7 875 (R52 500 x 15/100)
R0, it is a zero-rated supply
R0, it is an exempt supply
3. Calculate the VAT on the new computers purchased (under expenses).
Input VAT of R18 300 (R122 000 x 15/100)
Notional input VAT of R15 913 (R122 000 x 15/115)
Output VAT of R18 300 (R122 000 x 15/100)
R0, it is an exempt supply
No input VAT as no VAT was paid
3 TAX1501
May / June 2020
[TURN OVER