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Learning Objectives - VAT (FINAL)
Learning Objectives - VAT (FINAL)
Learning Objectives - VAT (FINAL)
VALUE-ADDED TAX
To be able to determine the VAT payable by or refundable to a vendor and to supply the
relevant accounting entries.
SPECIFIC OBJECTIVE: You must be able to explain, calculate and journalise the
VAT implications of various transactions
(a) Explain how the VAT system works (Ch. 31.1 & 31.2).
(b) Determine when VAT is levied (Ch. 31.5, 31.6 & 31.7).
(c) Determine when a person is required to be registered as a VAT vendor, the applicable
VAT periods as well as the payment of the tax (Ch. 31.4, 31.6 & 31.35).
(e) Determine when output tax should or should not be apportioned (Ch. 31.14).
(f) Determine the time and value of supply in general (Ch. 31.15.1 & 31.16.1) and also
specifically in respect of the following:
• Connected persons (Ch. 31.15.2 & 31.16.2);
• Rental agreements (Ch. 31.15.3);
• Progressive supplies (Ch. 31.15.4);
• Undetermined consideration (Ch. 31.15.5);
• Vouchers (Ch. 31.16.3) and discount vouchers (Ch. 31.16.4);
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• Entertainment (Ch. 31.16.5);
• Dual supplies (Ch. 31.16.6);
• Supplies for no consideration (Ch. 31.16.7);
• Instalment credit agreements (Ch. 31.23); Fixed property (Ch. 31.24).
(g) Determine the following inter alia in respect of the determination of input tax (Ch.
31.17 & 31.20):
Denial of input tax (Ch. 31.21); Deemed input tax on second-hand
goods (Ch. 31.22).
(h) Determine the requirements of a valid tax invoice, debit and credit note and determine
whether documents provided meet these requirements (Ch. 31.18 & 31.19).
(j) Explain and be able to apply the two accounting bases that may be applied by a vendor
to account for VAT (Ch. 31.3).
(k) Explain the requirements for the submission of a VAT return as well as the penalties and
interest that will be payable should the requirements not be met. Furthermore explain the
circumstances under which refunds will be payable. (Ch.
31.35, 31.36 & 31.37).
(l) Integrate the effects of VAT on income tax calculations (Ch. 31.34).
(m) Make use of accounting entries to show the VAT implications of transactions.
SOURCE:
SILKE: Chapter 31 as stated above. All paragraph references include sub-paragraphs unless
indicated otherwise.
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