VAT on the sale of a vehicle - please help

[mango]

Good day everyone,

Please help as I'm a bit confused here...

We are a small company and we bought a second hand Bakkie "cash" from a private person (non VAT vendor).

Our Bank suggested we finance that Bakkie so we can get the cash back for our cashflow and pay that off over
5 years (lease agreement).


Thing is we paid cash R 250 000 for the bakkie (no Input VAT) but when the bank paid us out they paid us out
R 217 391.30.... so they are claiming input VAT.


Now is this how it was suppose to be as we would not have done this if we were to loose the VAT on this and wont make
sense...

We are VAT registered.

Please help!


Regards

[Andromeda]

Hi Mango

1. You can claim the VAT on the LDV, provided you keep a completed VAT264 to hand.

You paid the seller R217,391 + VAT R32,609 = R250,000 and you can still claim deemed VAT of R32,609 from SARS.

I am guessing the bank just did a kind of loan as opposed to an installment sale of an asset.

[mango]

Ok, so I have all the previous owners details and documents.

Do I just complete the VAT264 form? If so how do I submit it to SARS ?

[Andromeda]

You don't have to take it to SARS, unless they ask for it. If the input results in a refund, they definitely will ask for it. In that case it must be supported by all the relevant documentation.