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.Discuss the VAT implications for 2022. A

.Discuss the VAT implications for 2022. A

FINANCIAL ACCOUNTING
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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Mr Alex bought a fishing boat 20m, on 1 June 2021 for R350 000 including VAT. Every weekend he would take 10 employees for the fishing at no charge. A market related cost for the fishing trip is R1250 (including VAT) per person. Discuss the VAT implications for 2022. A. Input tax can be claimed on the purchase of the boat and the trips to the employees B. Input tax can be claimed at R1 $250 \times 10 \times 15/115$ C. Free trips are a supply of entertainment and it has no input tax implication D. Output tax can be claimed on the purchase of the boat
Transcribed Image Text:Mr Alex bought a fishing boat 20m, on 1 June 2021 for R350 000 including VAT. Every weekend he would take 10 employees for the fishing at no charge. A market related cost for the fishing trip is R1250 (including VAT) per person. Discuss the VAT implications for 2022. A. Input tax can be claimed on the purchase of the boat and the trips to the employees B. Input tax can be claimed at R1 $250 \times 10 \times 15/115$ C. Free trips are a supply of entertainment and it has no input tax implication D. Output tax can be claimed on the purchase of the boat
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