Grade 12 Accounting May/June Exam paper 2 part 1 of VAT 2026

Added: 2026-06-03

[00:00:05]Hello grade 12 students. So, this video guys is going to help you for paper two.

[00:00:11]So, this is what I want to emphasize guys. So, the topic that I'm going to do in this lesson is VAT.

[00:00:19]So guys, VAT for the student who are doing rewrite is for paper two, okay? It will be there on the rewrite or those who are upgrading. But for those who are currently in grade 12, this topic is for term three. You will find it on your trial examination, okay?

[00:00:42]So, you must be aware of that.

[00:00:45]Okay, you must be aware of that. Okay.

[00:00:48]So, VAT is not a long chapter, it's very short chapter. So, I will do part one, two, and three.

[00:00:55]Go and watch all of them. I will post them at the same time. Just go to playlist and make sure that you watch all of them, okay?

[00:01:02]They're a bit different, but the principle they're the same. Okay, what you need to know about VAT? In South Africa, VAT is 15%. Okay?

[00:01:12]Nothing more, nothing less. Okay? Then what you are going to be required to do in this topic guys? Number one, be able to calculate VAT if you are given exclusive, if you are given inclusive, you must be able to calculate that. I'm going to show you through the example. Also, you need to know the difference between VAT input and VAT output. When we talk about VAT input guys, VAT input is when us as a business we are claiming from SARS.

[00:01:46]Why are we claiming? Number one, because we are registered for VAT. Number two, because when we are registered for VAT, we we have some cash that we need to give SARS. So, SARS allow us to claim when we earn. If we spend or we bought something, SARS allow us to do what? To do a some portion of claim of 15%. Okay?

[00:02:09]VAT output is when us as a business we receive cash or we have benefited. If we benefit, we need to do what?

[00:02:18]We need to give something to SARS. I'm going to I'm going to write the difference between those two here.

[00:02:24]VAT input is when we spend or when we are claiming, eh?

[00:02:35]Or when we can say there was no benefit on us.

[00:02:42]VAT input is you can refer to these three items. Then VAT output is when we receive or when we benefited some cash. If we have benefited or on the transaction money we read and we feel like, "Oh, here we benefit." It's going to be output. Okay.

[00:03:20]So, now let's go through this question paper, guys. I'm going to teach you more on this one.

[00:03:25]Chuckles Traders is registered for VAT, although the annual turnover is less than 1 million. Okay? The standard rate is 15% and the business is owned by Chuckles Trading.

[00:03:36]So, is it compulsory for you to register for VAT if your sales or revenue is more than million. But if it's below that, you can volunteer to register for VAT. Okay? But for more than million is a Required. Give one reason why Chaklas decided to register for VAT.

[00:03:57]Why he decided to register for VAT because his annual turnover is more than is is less than million.

[00:04:05]Number one, maybe he want to get involved himself into a tenders and some tenders you can't uh you you can't be registered for tender if you are not registered for VAT.

[00:04:18]Okay? Another reason, maybe he want to claim some input from SARS.

[00:04:24]Because maybe he's spending too much. He want to claim some cash. Because once you are registered, you can claim.

[00:04:30]Okay? It is two marks and they want one reason. Calculate the amount VAT of VAT that is payable to SARS for the two months period and 30 April 2022. Nine marks. So, let's work out let's work out from this one, guys.

[00:04:46]They want us to calculate the amount that we owe to SARS.

[00:04:50]Okay. Now, let's take information. VAT related transaction for the period and 30 April 2022.

[00:04:56]Number one, they say that balance due by SARS SARS was owing us. Which means that if SARS is owing us, I'm going to show you two methods.

[00:05:04]We can say we can use this method of calculating VAT input this side.

[00:05:13]It's a it's a it's a it's a VAT control account, you know? This one. VAT input and VAT output here.

[00:05:22]Or we can just use a line and which we are just going to add and subtract in this side. Okay. Amount that they owe us at the beginning of the year it was 2,600. We can use this method of okay? Whatever that we are going to claim, we're going to write it as positive, okay?

[00:05:48]Whatever that we are going to give to sales is going to be negative because it's going out.

[00:05:54]It's liability, eh?

[00:05:56]Okay.

[00:05:57]Then uh amount due by sales. Sales was owned as on 1 April. Then number two, we purchase a trading stock.

[00:06:08]And they give us amount of VAT exclusive, which means that we need to calculate VAT because here we only put VAT amount.

[00:06:14]Okay.

[00:06:15]Guys, this amount of 59,000 they say that uh remember we are looking for VAT and they say that is exclusive. Exclusive is 100, but if they said inclusive, you need to put 115. What we want divide by what we have.

[00:06:33]So that we can get a VAT amount. So the VAT amount uh is 8,850.

[00:06:40]>> [clears throat] >> Okay, let's also calculate for this one.

[00:06:45]Cash and credit sales uh is 87,400 and they say that is VAT inclusive. We're looking for VAT out of 115.

[00:06:56]11,400.

[00:06:58]Okay, let's we calculated those one and we got the VAT amount for them. Okay.

[00:07:03]Now, let's check.

[00:07:05]When we purchase a trading stock as um us as a business, we spend.

[00:07:13]If we spend, that's input.

[00:07:17]If we spend, remember here I said that we're going to use plus, here we're going to use minus.

[00:07:23]If we spend, we must add 8,850.

[00:07:28]Okay, we we can put it here and use this format as well.

[00:07:32]8,850 like this.

[00:07:36]Okay. Now, when we sell, whether it's cash or credit, it doesn't matter. When When we sell we benefited now. When we sell we benefited or we receive money. Which means that it's an output of 11,400.

[00:07:52]For this format, we're going to say minus 11,400. Focus on whether we benefit or not.

[00:08:00]Now, let's take the the next one. The next one until the last one, we are given the vet amount. No need to calculate anything because already is vet amount. Vet on drawings of trading stock by checkers.

[00:08:14]Guys, the owner withdraw. Remember, we purchase a trading stock here.

[00:08:20]And we claim that amount. Why allow SARS allow us to claim?

[00:08:24]Because SARS know that we're going to sell it and when we sell it, they're going to benefit.

[00:08:32]Not us benefit, they're going to benefit.

[00:08:35]Okay? When we benefit, we give SARS what we benefited.

[00:08:38]So, now instead of selling, the owner withdraw.

[00:08:44]We can't claim, guys, in that case. We need to give SARS back the money that we claim. So, it must be output. We are giving them what we claimed because we didn't sell.

[00:08:55]Okay? We can't claim because if we are allowed to claim, guys, when the owner withdraw, uh the the owner will withdraw every day so that he can claim.

[00:09:04]So, SARS is not a fool like that, you know?

[00:09:08]It's SARS is not a stupid.

[00:09:10]So, we have to give them their money back that we claimed. We didn't sell.

[00:09:14]Owner to benefit for his benefit. 1,200.

[00:09:19]Minus 1,200.

[00:09:22]Like that.

[00:09:24]Okay. Vet on return from debt.

[00:09:27]So, guys, we sell something to somebody and that person return the stock to us.

[00:09:33]If we are refunding back the money, did we benefit there?

[00:09:37]We are refunding back the money to to to to to customer.

[00:09:41]We didn't benefit guys.

[00:09:43]The money is gone.

[00:09:45]It means that if we didn't uh benefit, where do we record?

[00:09:53]No benefit.

[00:09:55]We're going to record it here. 2820.

[00:09:59]Okay, and the last one, VAT on discount received from supplier. Hey, guys.

[00:10:06]Here we benefited. We received discount from supplier. If we benefit, we put it here. We received a discount. If we received discount, we benefit. We must put it here.

[00:10:17]3360.

[00:10:19]Benefit minus 3360.

[00:10:22]Okay, and this will give us um minus 1690.

[00:10:30]And if you take total this side, this side, and you subtract this side, it's going to give you the same as that one.

[00:10:39]1690.

[00:10:42]Okay?

[00:10:43]The negative is indicating that this is payable.

[00:10:50]That's how we deal with VAT, guys. Check whether we benefited or we didn't benefit. So, yeah, that's how we we deal with it. So, if you are in grade 12, guys, or maybe uh you didn't write well on your uh rewrite, guys, don't hesitate to come back and keep living, neh? It happened. Uh not everyone is going to pass with writing, neh? Maybe some of you you will start watching this channel because you are writing tomorrow.

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[00:12:08]Go and watch part two.