I have been reading the guide for vendors (404) and could not find the answer to this question:
“If the department receives tenders from bidders and it is found that the highest scoring bidder (lowest in terms of price) has not added VAT simply because he has not registered because of not qualifying at the time of tendering, how should the department score this tenderer with the others who have added VAT because they are registered. Say, the lowest tender amount is 1.2 million for a period of 12 months?"
- Should the department add the 14% on his bid to be able to compare apples with apples and because the total taxable supplies exceed 1 million for the coming 12months? What will the implication be on the rest of the bidders?
- Should the department take off VAT on all other bidders to match them with this bidder in order to compare apples with apples? What will the implication be?
- What impact will the department have if it awards him the tender excluding VAT and he later registers and charges Output Vat?
- What will the implication be for the other bidders if the department considers this bidder without VAT yet he charges VAT later in the year after registering?
I do not really see this question being answered save to say that the departments are exempt from registering for VAT except where the Minister of Finance has ordered so.