Thrift Towers (Pty) Ltd is a resident of Namibia. Its sole asset is a rent producing property. The
ground and first floors of the building are let to commercial tenants. The remaining three floors
are let to residential tenants. Because it makes both taxable and exempt supplies for VAT
purposes, the Receiver of Revenue has applied an output basis of apportionment to arrive at
an acceptable input tax ratio of 40%.
Its income and expenditure for its 2-month tax period ending 315tJanuary 2017 is as follows (all
amounts are inclusive of 15% VAT)

Notes:

1. The insurance settlement of N$276,000 was for fire damage to the building. Afire had
   occurred at a take away outlet on the first floor. The fire damaged the take away outlet
   and also the flat situated directly above it. Compensation for the take away was
   N$218,500 and for the flat N$57,500
2. It cost N5161,000 to repair the burnt take away and N$57,500 to repair the flat
3. The maintenance cost of N$25,530 includes paint, paint brushes and other hardware
   items purchased to do maintenance work to the building.
4. Insurance premiums were incurred on the buildings
5. Bad debts are made up of N512,650 written off for residential tenants and the rest to
   commercial tenants
6. The managing director takes the accountant and lawyer to lunch from time to time
7. Thrift Towers (Pty) Ltd pays both the leasing director and the maintenance managers’
   telephone account. They both have to make business calls on a regular basis. The
   leasing director indicated that 30% of his calls were for business purposes. The
   telephone bill for the 2-month period was N$1,610. The maintenance managers
   indicated that 60% of his calls were for business purposes. The telephone bill for the 2—
   month period was NS805

   YOU ARE REQUIRED TO CALCULATE THE VAT LIABILITY FOR THE 2—MONTH PERIOD ENDING 31ST
   JANUARY 2017