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Thread: VAT Exemption

  1. #1
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    VAT Exemption

    I have a quick question regarding VAT exemption.

    Our client is busy with land development. They are registered VAT vendors, and therefore claim all VAT on the expenses of this development.

    The client’s auditors are of the opinion that the sale of the units will be exempted for VAT. Apparently they allowed this exemption to encourage the development of land about three years ago.

    Please advise.

  2. #2
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    Someone is confusing sale of developed units with temporary rental of unsold units.
    If the sale of the units were exempted, then you would not be able to claim the input credits. That aside, I suggest you request the section of the act where this is now exempted.
    (I am assuming that this development and sale is the nature of their business and not merely incidental)

  3. Thanks given for this post:

    Dave A (05-May-12)

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