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    Shiny Beauty

    Uploaded by

    Coty Mothebe
    f6

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Shiny Beauty

    Uploaded by

    Coty Mothebe
    10 views1 page
    f6

    Copyright

    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    f6

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    10 views1 page

    Shiny Beauty

    Uploaded by

    Coty Mothebe
    f6

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    3 Shiny Beauty, a vendor, specialises in the provision of hairdressing services.

    Shiny Beauty also sells hair and beauty


    products. The following are the value added tax (VAT) related transactions of Shiny Beauty for February 2018:
    Note M
    Revenue
    Services (exclusive of VAT) (1) 55,300
    Sales of hair and beauty products (inclusive of VAT) 18,500
    Expenses (all inclusive of VAT where applicable)
    Electricity 6,200
    Water consumption 2,100
    Hair and beauty products purchased 21,700
    Rent paid to a vendor 4,500
    Bad debt (2) 450
    Notes:
    (1) M6,800 included in services revenue represents services rendered on credit during the month of February 2018,
    which are not yet paid up.
    (2) The M450 bad debt expense relates to services provided to a customer on credit during the past six months. It
    has been proved beyond reasonable doubt that the debt is irrecoverable, and it was written off during the month
    of February 2018.

    Required:
    (a) Explain the general rule for determining the time of supply for goods or services.
    Note: You are not required to provide any special circumstances which are not covered by the general rule.
    (2 marks)

    (b) Explain whether Shiny Beauty qualifies for any bad debt relief in the tax period ended February 2018.
    (3 marks)

    (c) Calculate the VAT payable by Shiny Beauty for the month of February 2018.
    Note: Your answer should clearly indicate items on which input VAT is exempt, zero rated or not claimable.
    (5 marks)

    (10 marks)

    10

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