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Thread: Charging VAT and NO VAT on same invoice?

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    Platinum Member SilverNodashi's Avatar
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    Charging VAT and NO VAT on same invoice?

    Hi,

    As a VAT registered vendor, van I charge VAT and NO VAT on the same invoice?

    For example:

    Parts sold to client has a VAT rating of 14%
    Labor is charged with NO VAT (or 0%?)

    Does that make sense?
    When the client was quoted, VAT wasn't added to the labor portion, and I'm happy to side with it in this case. I know I can't claim that VAT from SARS, but can I do it on the same invoice?

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    Hi

    If you are a VAT registered vendor it is not up to you regarding whether or not to charge VAT on certain items.

    The VAT legislation is very comprehensive with clear definitions regarding when goods/services are Zero Rated or VAT exempt.

    Labour charges are not zero rated or exempt from VAT. If a mistake was made on the quote then the mistake need to be rectified and not simply carried forward to the Tax Invoice. SARS can still hold the supplier liable for the VAT even if it was not billed.

    Regarding your initial question, any accounting package should allow certain line items on an invoice to be zero rated or vat exempt. You are allowed to invoice with or without VAT on the same invoice.

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    Dave A (08-Jul-17)

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    I know I can't claim that VAT from SARS
    Say what?

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    Platinum Member SilverNodashi's Avatar
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    Quote Originally Posted by Andromeda View Post
    Say what?
    I know I can't claim VAT for something on which VAT wasn't charged.


    Any VAT fundies here?

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by SilverNodashi View Post
    As a VAT registered vendor, van I charge VAT and NO VAT on the same invoice?
    It happens all the time.

    When you buy a litre of milk and a tin of coffee at your supermarket.
    When you buy petrol and 500 ml oil at the fuel station.

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    Platinum Member SilverNodashi's Avatar
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    Quote Originally Posted by Dave A View Post
    It happens all the time.

    When you buy a litre of milk and a tin of coffee at your supermarket.
    When you buy petrol and 500 ml oil at the fuel station.
    Those items are VAT exempt. Can labor / work carried out be classified as VAT exempt?

    I have decided though to just give him 8% discount instead and still add VAT to the labor charges

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    Site Caretaker Dave A's Avatar
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    In that case, what Achmat said in post 2.
    Which it seems you got down anyway.

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