Results 1 to 6 of 6

Thread: Barter transaction

  1. #1
    Full Member Jane123's Avatar
    Join Date
    Aug 2015
    Location
    port Elizabeth
    Posts
    26
    Thanks
    5
    Thanked 0 Times in 0 Posts

    Barter transaction

    Hi there!

    What is the correct accounting practice to record barter transactions? I know vat definitely needs to recorded!

    Thanks

  2. #2
    Diamond Member HR Solutions's Avatar
    Join Date
    Mar 2013
    Location
    Capetown/Jhb
    Posts
    3,327
    Thanks
    113
    Thanked 214 Times in 202 Posts
    Why would vat definitely need to be recorded ?
    HR Solutions - Recruitment Specialists - Johannesburg & Capetown Tel: 0861-045-263
    Upload your CV @ www.2hrs.co.za

    Biometric Fingerprint Criminal Checks (AFIS)

  3. #3
    Full Member Jane123's Avatar
    Join Date
    Aug 2015
    Location
    port Elizabeth
    Posts
    26
    Thanks
    5
    Thanked 0 Times in 0 Posts
    Apologies for my ignorance on the matter but this is why I am posting- from what I have managed to read up, barter transactions must be subject to tax.

  4. #4
    Diamond Member HR Solutions's Avatar
    Join Date
    Mar 2013
    Location
    Capetown/Jhb
    Posts
    3,327
    Thanks
    113
    Thanked 214 Times in 202 Posts
    Oh I was under the impression that you had to hit the 1mil mark first
    HR Solutions - Recruitment Specialists - Johannesburg & Capetown Tel: 0861-045-263
    Upload your CV @ www.2hrs.co.za

    Biometric Fingerprint Criminal Checks (AFIS)

  5. #5
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,977
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    My suggestion is invoice your supply to the other party as you normally would, and capture the bill from the other party as you normally would. Then receive payment for your invoice and make payment for the other party's bill from a contra account.

    This way the exchange of value is properly accounted for by both parties without the actual funds exchanging hands.
    The trouble with opportunity is it normally comes dressed up as work.

  6. #6
    Full Member Jane123's Avatar
    Join Date
    Aug 2015
    Location
    port Elizabeth
    Posts
    26
    Thanks
    5
    Thanked 0 Times in 0 Posts
    Thanks so much Dave! That's how I ended up doing it- we just agreed on a fair value price to each invoice but was just wanting to double check all was in order as one reads so much about dodgy barter deals and one doesn't want to end up doing the same unbeknownst... Appreciate the help!

Similar Threads

  1. [Question] Transaction fees
    By ians in forum Business Finance Forum
    Replies: 8
    Last Post: 03-Sep-13, 12:56 PM
  2. Small business & barter trading
    By adrianh in forum General Business Forum
    Replies: 0
    Last Post: 06-Sep-10, 11:08 PM
  3. [Question] Vat on property sale transaction
    By QR Smith in forum Tax Forum
    Replies: 6
    Last Post: 09-Jul-09, 05:47 PM
  4. Barter trade accounting
    By Dave A in forum General Regulatory Compliance Forum
    Replies: 2
    Last Post: 26-Jul-07, 11:46 AM
  5. PPS BEE transaction
    By duncan drennan in forum BEE and Employment Equity Forum
    Replies: 0
    Last Post: 24-Nov-06, 11:48 AM

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
  •