VAT INPUT

[risgila]

Hi There

1. Can the supplier refuse to add the (OUR) VAT number on previous issued Tax Invoice in case one was not a registered VAT Vendor by the time of the transaction

For sometime now I've been facing an issue regarding the INPUT VAT, The situation is that: We bought a Truck Tractor a year ago, by the time of purchase we were Non Vendor but couple of month after the purchase we managed to register for VAT. So now the problem is that we approached the supplier asking that the Tax Invoice be amended by adding our new vat number so that the Tax Invoice can comply with VAT requirement for Tax invoice (Sec20(4) and so we can claim the INPUT since we are still within the 5years period.

2. Since we are a registered VAT vendor now and we can claim the input within the 5years, For OUTPUT TAX purposes do we have to go back re-invoice again or Not?
The problem I see is that if we must go back and re-invoice, the customers won't be happy and will not pay then we suddenly become indebted to SARS.

[Andromeda]

Hi risgila

I think you are misinterpreting the 5 year story; you have 5 years in which to CORRECTLY account for output VAT, or input VAT.

VAT that you incurred prior to registration is part of your cost. VAT that you did not charge on your outputs prior to registration, is just that.

[Dave A]

Is the truck tractor currently sitting in stock (you buy and sell truck tractors), or is it a fixed asset of the business (you use truck tractors in your business), or have you sold the truck tractor?

The answer to this will affect how you could/should proceed.

[risgila]

Is the truck tractor currently sitting in stock (you buy and sell truck tractors), or is it a fixed asset of the business (you use truck tractors in your business), or have you sold the truck tractor?

The answer to this will affect how you could/should proceed.

We use the truck tractors (Fixed asset) in the business to Haul Coal and mixed materials (in case of mining rehabilitations projects)

[Dave A]

So the question is - can you claim input VAT upon conversion to a Vat vendor?
I know you can for stock, for example. However when it comes to vehicles, I confess I don't know for sure - but hopefully one of the smart folks around here will.

[Andromeda]

This link sheds some light on the subject:

http://nuus.fodb.co.za/?p=986

[Dave A]

Section 18 of the VAT Act is quite a read!

[Andromeda]

Yes, and contains the longest sentences I have ever read.