Application of Value Added Tax (VAT) in a computerised accounting package
After completion of this module, you will have learned:
• Definition and review of VAT • Calculation of VAT • Different VAT percentages – Zero-rate renderings / Exemptrate renderings
• Registration for VAT • Law requirements – Invoice basis / Payment basis
• Tax periods • Law requirements for documents for VAT purposes – Tax invoice / Credit and debit notes
• Law requirements regarding input and output tax – Allowable deductions with regard to input tax / Charging of output tax
• Accounting procedure with regard to VAT – Procedure to take input tax into consideration – Stock purchases – Operating and administrative expenses – Capital expenses (fixed assets) – Discount allowed to customers – Returns from customers – Bad debts – Procedure to take input tax into consideration – Sales of stock or services rendered – Returns from suppliers – Discount received from suppliers – Bad debts recovered – Adjustments for a transaction where VAT is charged and is not valid • Completion of the tax report for the Receiver of Revenue
