Mr, Smith is a registered VAT vendor. He brought a computer for R115 000 (including VAT) inMarch 2021. He intended to use it for business purposes. He derived 80% of the income fortaxable supplies and 20% for exempt supplies.He uses the turnover apportioned method inrespect of the computer acquired. At the end of February 2023, Mr Smith has stated that theusage has changed to 60% taxable and 40% for exempt supplies. At this date the open marketvalue is r82 340.00. How should Mr Smith account for the decrease in use of taxable supplies.

Value Added Tax (VAT) is a consumption tax levied on the value added to goods and services at each…

Answered: value is r82 340.00. How should Mr…

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value is r82 340.00. How should Mr Smith account for the decrease in use of taxable supplies.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 11DQ

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