Lecture Notes: Understanding Till Slips (Receipts)

Introduction to Till Slips

• Till slips, also known as receipts, are important documents that record transactions.
• This lesson uses examples with a 14% VAT rate, though the current rate in South Africa is 15%.
• Till slips can have different formats; some may list items individually or in groups (e.g., Mangoes x3).

Key Components of a Till Slip

• Shop Name: Located at the top of the slip.
• Purchase Details: Includes date of purchase, cashier's name, and time (e.g., 18th January 2017, 10:51, Cashier: Lindiwe).

Understanding VAT and Non-VAT Items

• Stars/Hashtags on Items:
  • Stars indicate non-VAT items (0% VAT).
  • Some shops use hashtags instead of stars.
• VAT Calculations:
  • Non-VAT items add up to 92.02 Rand.
  • VAT items add up to 71.97 Rand (inclusive of VAT).
  • Total with VAT included is 163.99 Rand.

Common Mistakes in VAT Calculations

• Do not calculate VAT as a percentage of the total price; the VAT is already included.
• To find the VAT included in prices, divide the VAT-inclusive price by 1.14 (14% VAT example).
• Example: For a VAT-inclusive price of 71.97 Rand, the VAT is calculated as 71.97 - (71.97 / 1.14) = 8.84 Rand.

Practice with Different Till Slips

• Example 1: Shop and Go
  • Uses hashtags for zero-rated items instead of stars.
  • The total VAT paid was 38.92 Rand.
• Example 2: Different Shop with 15% VAT
  • Total for non-VAT items: 275 Rand.
  • Total for VAT items: 582.45 Rand.
  • VAT paid calculated as difference between VAT-inclusive and exclusive prices: 75.97 Rand.

Calculation Tips

• For non-VAT items, sum up all marked with a star/hashtag.
• For VAT items, sum prices and use the formula to find the VAT portion.
• Divide VAT-inclusive price by 1.14 (or 1.15 for newer rates) to find the base price before VAT.
• Avoid common pitfalls like calculating VAT as a simple percentage of a total.

Final Example and Verification

• Sum up non-VAT and VAT items separately.
• Verify total by confirming that combined sums equal the reported total on the slip.
• Example showed a correct total of 193.24 Rand.

Conclusion

• Understanding till slips is crucial for accurate financial tracking and VAT calculations.
• Practice with various examples helps reinforce understanding of receipt structures and tax implications.