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Mavuno (Pty) Ltd is a registered VAT vendor in South Africa and applies the invo...

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Mavuno (Pty) Ltd is a registered VAT vendor in South Africa and applies the invoice basis of accounting. The company makes both taxable and exempt supplies. During the tax period, the following transactions occurred:

  • Purchased trading inventory for R230,000, inclusive of VAT. Of this inventory, 80% was used to make taxable supplies and 20% was used to make exempt supplies.

  • Purchased office equipment for R115,000, inclusive of VAT. The equipment was used exclusively in making taxable supplies.

  • Incurred entertainment expenses of R11,500, inclusive of VAT, for a staff year-end function.

Assume all suppliers are registered VAT vendors, valid tax invoices were obtained, and the expenses were incurred during the tax period.

What is the total input tax that Mavuno (Pty) Ltd may deduct for the tax period?

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