Some advise on vat and sars

[rourke]

Good day.

I have a client who opened a company registered it for vat.
He bought a land and is building a house residential property in the company.

Now he is planning to claim all approved vat invoices in the company

I have asked him is it an investment property to sell later. He said he was going to keep it for a while

Now my questions are:

1 do we just claim vat refunds all the months the construction goes on? Will sars not enquire what's going on? As there will be no sales.

2 if I claim the vat will it be capital in nature as investment property? Or just cost of sales?
I think investment property as it adds to the value of the property.
Excuss this question as I am a little out of touch.

I thank all that reply in advance

Kind regards

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[dellatjie]

Is he going to rent out the residential property eventually?

Also, what kind of business is this?


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