Question

Ms Rennet buys 500 handbags from the factory at R120 each (excluding VAT).She then sells the handbags to her customers for R 190 each (VAT inclusive)

3.1.1.Calculate how much VAT the factory has to pay to SARS for the bags that Ms Rennet bought

3.1.2.How much VAT does Ms Rennet receive from her customers for the bags

3.1.3.Ms Rennet also has to pay SARS for the VAT she received from her customers.How much VAT will she pay to SARS?

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Answer 1

Explanation:

3.1.1 What do you mean by SARS

Answer 3.1.2

20% of R190 = R38

38*500=R19000