Vat Assistance

[flaker]

So a year ago i become a registered vendor of motor vehicles. vat registered.in simple terms i now pay vat on the difference of selling & purchase price. lets take this scenario:

1)i purchase a double cab bakkie from a private individual, not registered for vat. I get him to complete a vat 264 form in order that i claim vat (notional or deemed vat, i think it is referred to). Purchase price R100,000.

2)puchase a canopy for same vehicle privately again for R10,000-complete vat 264 as in 1 above,

3)vehicle is sent by carrier to Gauteng to be sold there , cost R3000. Carrier issues an invoice (non-vat) Carrier is not registered for vat.

4) vehicle is sold in Gauteng for R120,000 tp private individual.

Question: how much vat is payable by me. is vat 14% of 120-(100+10) or 120-(100+10+3) ?

any help appreciated.

[Mark Atkinson]

Assuming the 264s are valid (I'm not knowledgeable on the conditions of 264s), practically speaking, you will pay vat on 120-(100+10).

Seeing as the carrier is not registered for VAT, you didn't pay VAT on the invoice and therefore cannot claim VAT.

[flaker]

Vat

To Mark, nor did i pay vat on the canopy. The canopy purchase was a 1st for me. was i correct in getting seller to complete a 264 form in order that i claim "deemed vat".

& to all: my referance to "deemed vat" or "notional vat" is that correct accounting language?

thank you

[geraldenek]

Hello Flaker

You were correct in completing the VAT264 form for the canopy and claimed the VAT.

VAT on second hand goods is called notional input tax.

If you are ever uncertain about VAT questions - SARS has set out a guidline called VAT420 - a guide for motor dealers

[Dave A]

i've not ever claimed vat on carrier invoices but felt cheated as this carriage ads cost to the vehicle.

Why don't you use a VAT registered carrier then?

[flaker]

Why don't you use a VAT registered carrier then?

this carrier happens to deliver diectly to little towns in mpumulanga unlike the bigger ones (carriers) which would probably deliver to their depots for collection oor onward separate delivery at extra cost. i suppose i can't have it both ways

[Dave A]

i suppose i can't have it both ways

Yep - I'm afraid so.

[jacovanzyl8324]

Second Hand Vehicle from Dealer to Farmer?

Hi.


Does S18.4(c) apply to a farmer who buys a second had Motor Car as defined from a dealer with the intention to use for Vatable supplies?
Can he claim the notional Input via the new VAT264 (Does the dealer need to submit the VAT264 or purchaser)

All ears......

[Beancounter]

Hi.


Does S18.4(c) apply to a farmer who buys a second had Motor Car as defined from a dealer with the intention to use for Vatable supplies?
Can he claim the notional Input via the new VAT264 (Does the dealer need to submit the VAT264 or purchaser)

All ears......

Only if the vehicle qualifies i.e. is not a passenger vehicle like a double cab or SUV. Input VAT may not be claimed on passenger vehicles even if used for Vatable supplies. Refer VAT404 guide.

[CLIVE-TRIANGLE]

Motor dealers and rental businesses are the exceptions.