Results 1 to 6 of 6

Thread: SARS won't allow client to claim Input VAT on the Installment Sale Agreement

  1. #1
    Junior Member
    Join Date
    Jul 2013
    Location
    South Africa
    Posts
    16
    Thanks
    10
    Thanked 6 Times in 5 Posts

    SARS won't allow client to claim Input VAT on the Installment Sale Agreement

    I have question in this regard, here is the scenario:

    The client was in the process of registering for VAT, in the mean time he purchased Capital goods through an Installment Sale Agreement. We submitted his VAT return and he was selected for an audit, now here is where the big problem comes in the bank doesn't want to co operate and issue a duplicate ISA or tax invoice with the client's VAT number. We submitted the supporting documents as is and explained to SARS the situation, unfortunately they cannot allow it due to the fact that the VAT number not appearing on the ISA.

    I tried asking the SARS branches and they were not much help.

    What can I possibly to resolve this issue?

  2. #2
    Bronze Member Brett Nortje's Avatar
    Join Date
    Jan 2015
    Location
    Cape Town
    Posts
    132
    Thanks
    28
    Thanked 1 Time in 1 Post
    Quote Originally Posted by Wildsniper911 View Post
    I have question in this regard, here is the scenario:

    The client was in the process of registering for VAT, in the mean time he purchased Capital goods through an Installment Sale Agreement. We submitted his VAT return and he was selected for an audit, now here is where the big problem comes in the bank doesn't want to co operate and issue a duplicate ISA or tax invoice with the client's VAT number. We submitted the supporting documents as is and explained to SARS the situation, unfortunately they cannot allow it due to the fact that the VAT number not appearing on the ISA.

    I tried asking the SARS branches and they were not much help.

    What can I possibly to resolve this issue?
    Well, if i was you, i would pay the vat on those goods, or return them. after that they could buy them again? this would be after getting a sales number, unless they opened them. if they opened them, sell them to someone else after putting it back together!

    Alternatively, if cash flow is low, you could damage them and send them back?

    Or, you could try to swap them at a good price to some vendors? i mean the people that are not prepared to go all the way to the factory, you know, the people that will pay 'cost price' for them?
    !! Going to my destruction !!

  3. #3
    Silver Member Christel's Avatar
    Join Date
    Feb 2012
    Location
    Port Elizabeth
    Posts
    360
    Thanks
    57
    Thanked 96 Times in 68 Posts
    Can the bank not do a letter with the client's vat number on and explain why they cannot re-issue the HP agreement. Else, ask the bank to write the number on and sign next to it with the bank stamp on.... you have 5 years to claim VAT on purchases.
    always fear when Christel is near....

  4. Thanks given for this post:

    Wildsniper911 (07-Jan-15)

  5. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    How about claiming the VAT portion on the value of the fixed asset upon conversion to registered VAT vendor, along with stock, fixtures and fittings etc. held at the time?

  6. Thanks given for this post:

    Wildsniper911 (07-Jan-15)

  7. #5
    Junior Member
    Join Date
    Jul 2013
    Location
    South Africa
    Posts
    16
    Thanks
    10
    Thanked 6 Times in 5 Posts
    Quote Originally Posted by Christel View Post
    Can the bank not do a letter with the client's vat number on and explain why they cannot re-issue the HP agreement. Else, ask the bank to write the number on and sign next to it with the bank stamp on.... you have 5 years to claim VAT on purchases.
    I did that with another client who forgot to give their VAT number, the bank manager wrote the VAT number on the ISA, stamped and signed it , after I submitted it the auditor let me know that it was not correct and possibly fraud they disallowed it, but they didn't levy a 25% penalty so I can't understand why they would then claim it to be fraudulent.

    I didn't think about a letter from the bank though I will give that a try.

    Thank you

  8. #6
    Silver Member
    Join Date
    Sep 2012
    Location
    Louis Trichardt
    Posts
    334
    Thanks
    58
    Thanked 43 Times in 39 Posts
    Wildsniper911, did you manage to claim the VAT?

Similar Threads

  1. New SARS Efiling Client Filter
    By AndreH in forum Accounting Forum
    Replies: 4
    Last Post: 27-Aug-14, 12:56 PM
  2. Replies: 4
    Last Post: 10-Jul-13, 10:47 AM
  3. [Question] Vehicle installment agreement
    By miskaccounting in forum Accounting Forum
    Replies: 9
    Last Post: 13-Oct-12, 08:12 AM
  4. How to claim Traveling Allowance from SARS
    By regim in forum Tax Forum
    Replies: 3
    Last Post: 30-Jul-12, 09:56 AM
  5. [Question] Instalment Sale Agreement
    By QUINN in forum General Business Forum
    Replies: 13
    Last Post: 12-Jun-09, 08:38 AM

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •