Kantar's business
Kantar's business provides delivery services. The majority of its customers are members of the public.

Kantar is not registered for the purposes of value added tax (VAT).

(d) Value added tax (VAT)
Explain, without performing any calculations, Kantar's obligation to compulsorily register for VAT; and state Kantar's ability, following registration, to recover the input tax incurred prior to registering

Required:

(d) Value added tax (VAT).              (4 marks)

Professional marks will be awarded for the clarity of the calculations, analysis of the situation, the effectiveness with which the information is communicated, and the quality of the overall presentation.     (4 marks)