On 1 January 2022, Mr M Bembe opened a hardware store, Bembe Hardware and is registered as a VAT vendor (the applicable VAT rate is 15%). Bembe Hardware grants a cash discount of 5% on all cash transactions with a value higher than R2 500.
On 8 January 2022, Bembe Hardware sold a tool box to Mr S Kerby to the amount of R1 200 (excluding VAT) and was paid with a debit card.
What is the amount of VAT to be recorded? Select one:
a. R171,42
b. R168,00
c. R180,00
d. R171,00
e. R156,52