Value Added Tax (VAT) is one of 9 topics in the Grade 10 Accounting CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. The standard VAT rate in South Africa is:
15%
10%
20%
14%
Answer: 15% — South Africa's standard VAT rate is 15%, applied to most everyday goods and services.
Easy
2. VAT is described as an indirect tax because:
The business collects it on behalf of SARS, but the final consumer ultimately bears the cost
The business pays it directly out of its own profit with no way to recover it
It is only charged once a year
It only applies to imported goods
Answer: The business collects it on behalf of SARS, but the final consumer ultimately bears the cost — VAT is indirect because it is added to the price and paid by the consumer; the VAT-registered business merely collects it and pays it over to SARS, rather than bearing the cost itself.
Medium
3. A business may only charge VAT on its sales if it is:
Registered with SARS as a VAT vendor
A company, never a sole trader
Selling only imported goods
Older than five years
Answer: Registered with SARS as a VAT vendor — Only a business registered with SARS as a VAT vendor may (and must) charge VAT on its taxable sales; sole traders can and do register for VAT once required or if they choose to voluntarily.
