So a year ago i become a registered vendor of motor vehicles. vat registered.in simple terms i now pay vat on the difference of selling & purchase price. lets take this scenario:
1)i purchase a double cab bakkie from a private individual, not registered for vat. I get him to complete a vat 264 form in order that i claim vat (notional or deemed vat, i think it is referred to). Purchase price R100,000.
2)puchase a canopy for same vehicle privately again for R10,000-complete vat 264 as in 1 above,
3)vehicle is sent by carrier to Gauteng to be sold there , cost R3000. Carrier issues an invoice (non-vat) Carrier is not registered for vat.
4) vehicle is sold in Gauteng for R120,000 tp private individual.
Question: how much vat is payable by me. is vat 14% of 120-(100+10) or 120-(100+10+3) ?
any help appreciated.