QUESTION 3 Ms. Rennet is a retired advocate She always wanted to be a business woman, her, she decided to start a business which specialises in selling handbags but did not have the time to fulfil her dream with the money that was paid out to Ms Rennet buys the bags directly from the factory. Ms. Rennet must pay VAT (Value Added Tax) to the factory for the bags. The factory has to pay the VAT to SARS (South African Revenue When customers buy bags from Ms. Rennet they pay VAT to her and she Service). has to pay VAT to SARS. PLEASE NOTE: Ms. Rennet will not pay all the VAT that she receives from her customers to she received from her customers and what she paid to the factory. 3.1 Ms. Rennet buys 500 handbags from the factory at R 120 each (excluding VAT) She then sells the handbags to her customers for R 190 each (VAT inclusive) T the factory has to pay to SARS for the bags that​