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Lay Lawn $($Pty$)$ Ltd provides laying of instant lawn, lawn mowing, and maintenance

services and is well known for its professional services. The company started trading

on $1$ March $2024$ and immediately registered as a value$-$added tax $($VAT$)$ vendor. The

company makes $100\%$ taxable supplies.

Below is a list of Lay Lawn $($Pty$)$ Ltd$$s transactions that took place during the months

of March and April $2024.$ All amounts include value$-$added tax where applicable unless

stated otherwise.

$$ On $1$ March $2024,$ Lay Lawn $($Pty$)$ Ltd secured $55$ annual lawn maintenance

contracts. Lay Lawn $($Pty$)$ Ltd invoiced $55$ customers in both March $2024$ and

April $2024$ at a monthly fee of R$1200($excluding value$-$added tax$).$ This monthly

fee is fixed for the year.

$$ On $1$ March $2024,$ Lay Lawns $($Pty$)$ Ltd employed six employees $($four laborers

and two supervisors$).$ The laborers were paid R$9200$ each per month, and the

supervisor were paid a monthly salary of R$10000$ each.

$$ On $1$ March $2024,$ Lay Lawns $($Pty$)$ Ltd purchased, for cash, a second$-$hand

truck. This second$-$hand truck was purchased from a vendor for R$196000.$ The

$9$ HBACC$330-1-$Jan$-$Jun$2024-$SA$1-$TD$-$V$3-07062024$

use of this truck was given to the one supervisor as his $$company car$$ from $1$

March $2024.$

With regards to the truck, Lay Lawns $($Pty$)$ Ltd:

o Paid R$720$ for the truck licence.

o Bears the truck$$s full cost of fuel and maintenance. Fuel for the month of

March $2024$ amounted to R$7020.$

This truck was stolen on $31$ March $2024.$ An indemnity award of R$142975$ was

received from the company$$s insurers on $22$ April $2024.$ The truck has not yet

been replaced.

$$ Instead of paying the employees extra cash to cover their transport expenses

to and from work, Lay Lawn $($Pty$)$ Ltd purchased taxi coupons. These taxi

coupons are distributed to the employees weekly. During March and April $2024,$

Lay Lawn $($Pty$)$ Ltd incurred R$2535$ on purchasing taxi coupons.

$$ During March $2024,$ Lay Lawn $($Pty$)$ Ltd purchased herbicides, fertilisers, and

other lawn maintenance products from a registered vendor amounting to R$25$

$605.$ These purchased items form part of the company$$s trading stock.

REQUIRED:

Calculate the net value$-$added tax payable to or owed by SARS for the two$-$month

VAT period of Lay Lawn $($Pty$)$ Ltd$,$ which ended on $30$ April $2024.$

If no or zero value$-$added tax is applicable to a transaction, state a brief reason for

your answer.

Round your answers to the nearest rand.

Answer & Explanation Solved by verified expert

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