Fac1501 Exam Pack Detailed Questions And Answers

Payment Basis - when a vendor acquires goods and services on credit, when can you claims input tax deductions according to VAT. {Ans: When payment to the creditor is made.}Category B - Vendor Taxable Supplies (Farmer) exceeding {Ans: R 1.5 Million}When is it compulsory to register as a vendor? {Ans: Total value of his taxable supplies exceeds R 1 000 000 for a 12 month period.}Category A - Vendor Taxable Supplies must not exceed {Ans: R 30 Million}Output Tax is larger than Input Tax - {Ans: the difference is payable to SARS.}What policy will determine the favorable cash flow advantage for the vendor. {Ans: Debtors and Creditors Payment Policy}