Advice from those in the know would be sincerely appreciated.
Company A is currently not registered for VAT (still trading below the Vat Turnover Threshhold) and enters a Bid for a R4million value.
1) Given the value will Company A be legally obligated and required to immediately register for and and charge Vat IF they awarded the Tender?
2) If yes should Company A be including Vat in their Bid Offer Price (even though NOT Vat registered at time of submitting the Bid Offer)?
3) Is the Tender Issuing Party legally obligated to recognize the fact that because the Value exceeds the Vat Turnover they must consider all Bids inclusive of Vat and accept that Vat will have to be paid notwithstanding the fact that Company A is not a Vat Vendor at the time of Bid Submission/bid Closing Date?
I guess put another way...at what point in time is a party obligated to register and collect Vat in a situation where they quote for an amount that will push them over the Vat Turnover Threshhold.
Is the transaction that pushes them over the VTT exempt from Vat?
Do they only then, after crossing the VTT, register for and start collecting Vat on subsequent transactions?
Please keep the advice as simple as the questions (i.e. use the assumptions implied above).
Many thanks in advance.
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