20: VAT

• VAT is levied at 15% on the value of the majority of goods and services supplied by vendors
• No VAT on the settlement of accounts(debtors/creditors)
• "Money thing" = 115%

  • Cash
  • debtor
  • creditor
• Expense, asset or income= 100%
• input VAT: if a company buys goods or assets, a portion of the purchase with VAT that can be claimed back
• Output VAT: the sellers have to pay over 15% of the proceeds from the sale of goods or services to SARS
• VAT control account:

  • Debit side: amount receivable
  • credit side: amount payable