The factory has to pay the VAT to SARS (South African RevenueMs. Rennet is a retired advocate. She always wanted to be a business woman,her, she decided to start a business which specialises in selling handbags.but did not have the time to fulfil her dream. With the money that was paid out toMs. Rennet must pay VAT (Value Added Tax) to the factory for the bags.QUESTION 3Ms Rennet buys the bags directly from the factoryService).When customers buy bags from Ms. Rennet they pay VAT to her and shehas to pay VẬT to SARS.PLEASE NOTE:Ms Rennet will not pay all the VAT that she receives from her customers toSARS, The VAT that she has to pay to SARS is the difference between what shereceived from her customers and what she paid to the factory..Ms. Rennet buys 500 handbags from the factory at R 120 each (excluding VAT).She then sells the handbags to her customers for R 190 each (VATinclusive)3.1Calculate how much VAT the factory has to pay to SARS for the bags thatMs. Rennet bought.3.1.1How much VAT does Ms. Rennet receive from her customers for the bags?S.1.2 Ms. Rennet also has to pay SARS for the VAT she received from her customers.How much VAT will she pay to SARS?3.1.3

The amount of VAT paid by the user is dependent on the cost of the product, less any costs of…

Answered: her, she decided to start a business…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Alex Kingsford is a mechanical engineer working for ABC engineering in Melbourne. Alex owns a property in then Dandenong Victoria where he and his family are residing. He also runs a home-based food catering business, preparing food for local residents and school canteens. Catering business is very structured. Alex works 15 days a month and earns a substantial income from the catering service business. He is travelling from ABC engineering workshop to his homeBy car or sometimes Uber.When he lost his tax return in July 2019 he has requested a deduction for a substantial amount of travelling expenses between the ABC engineering workshop and home-based food business. Alex is now seeking your advice with reference to relevant legislation and case law discuss whether Alex travelling expenses between the ABC engineering workshop and his homebase catering business is an allowable deduction.
Dr. Nicely, self-employed, began her career in general practice. After a couple of years, however, she came to realize that she would be a lot happier – and make a lot more money – if she specialized in cosmetic surgery. So she went back to school in the evenings, took enough courses, then transitioned her practice into “making people beautiful.” She certainly is earning more now. In fact she’s all-around thrilled . . . but also tax-confused. So she calls you, her CPA, to ask whether she can deduct all of the cost(s) she’d reasonably incurred toward her goal of moving from general practice into cosmetic surgery. Your response, and why?
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