Results 1 to 4 of 4

Thread: VAT on Rent Deposit

  1. #1
    Email problem
    Join Date
    Nov 2011
    Location
    Hillcrest, KZN
    Posts
    17
    Thanks
    3
    Thanked 0 Times in 0 Posts

    VAT on Rent Deposit

    Just need to clarify whether or not VAT can be charged on a rental Deposit. (both parties are VAT registered)

  2. #2
    Silver Member
    Join Date
    Apr 2011
    Location
    Jhb
    Posts
    281
    Thanks
    105
    Thanked 14 Times in 10 Posts
    No, it shouldn't be charged or claimed by either party.

  3. #3
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    3,480
    Thanks
    134
    Thanked 695 Times in 593 Posts
    Blog Entries
    1
    You may only charge VAT when a transaction is concluded. Receipt of the deposit is not a complete transaction.

    What is interesting though , if the deposit is to cover defaulting rent, then an invoice must be generated with VAT must be created as a normal receipt of rent. Ensure that your deposit includes the vatable amount, or you will be out of pocket for the VAT portion.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

  4. Thanks given for this post:

    BusFact (08-Mar-12)

  5. #4
    Email problem
    Join Date
    Nov 2011
    Location
    Hillcrest, KZN
    Posts
    17
    Thanks
    3
    Thanked 0 Times in 0 Posts
    Thank you very much.

Similar Threads

  1. Replies: 5
    Last Post: 08-Mar-12, 09:00 AM
  2. [Question] VAT on deposit?
    By Newretailer in forum General Business Forum
    Replies: 4
    Last Post: 01-Nov-11, 06:48 AM
  3. Holiday apartment deposit scam
    By Dave A in forum Scam Alert Forum
    Replies: 11
    Last Post: 02-Sep-11, 08:24 AM
  4. Rent deposit problem.
    By marco in forum General Business Forum
    Replies: 9
    Last Post: 31-Jan-08, 06:32 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •