Question 3 (a) Gaborone Motor Dealers Computation of the VAT payable for the month of May 2016: P’000 Output VAT: Sales second hand vehicles - P11,380x12% 1,365.6 2 – Sales brand new vehicles P15,200 x 12% 1,824.0 1 – – Sales export vehicles 0% 0 1 – – Disposal of Benz exempt 0 1 – ----------- output tax 3,189.6 ------------ VAT: Administration expenses exempt 0.0 1 – Distribution/adverting expenses 1 – Purchases of vehicles: 2nd hand from non-registered 2 – From registered traders P1,900 x 12% 228.0 1 – Imported vehicles P9,120 x 12% 1,094.4 1 – Professional fees P210 x 12% 25.2 1 – Workshop wages exempt 0.0 1/2 – Directors’ remuneration exempt 0.0 ½ – Acquisition of Prado exempt 0.0 1 – Purchase of computer P24 x 12% 2.88 1 – Purchase of fridge entertainment exempt 0.0 1 – --------------- Total recoverable input VAT 2,029.6
Question 3 (a) Gaborone Motor Dealers Computation of the VAT payable for the month of May 2016: P’000 Output VAT: Sales – second hand vehicles - P11,380x12% 1,365.6 2 Sales – brand new vehicles – P15,200 x 12% 1,824.0 1 Sales – export vehicles – 0% 0 1 Disposal of Benz – exempt 0 1 ----------- output tax 3,189.6 ------------ VAT: Administration expenses – exempt 0.0 1 Distribution/adverting expenses – 1 Purchases of vehicles: 2nd hand from non-registered – 2 From registered traders – P1,900 x 12% 228.0 1 Imported vehicles – P9,120 x 12% 1,094.4 1 Professional fees – P210 x 12% 25.2 1 Workshop wages – exempt 0.0 1/2 Directors’ remuneration – exempt 0.0 ½ Acquisition of Prado – exempt 0.0 1 Purchase of computer – P24 x 12% 2.88 1 Purchase of fridge – entertainment exempt 0.0 1 --------------- Total recoverable input VAT 2,029.6
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