VAT and Donations

[Pete6110]

Hi all
If an agricultural training farm is a VAT vendor and receives a donation of a large piece of new equipment and the deal is that all they have to pay is the VAT portion, is that payment claimable as input VAT?

[Dave A]

As a first step - Does the transaction documentation fulfill the requirements for an input VAT claim?

i.e. will you have an abridged Tax Invoice for amounts under R5000, or a Tax Invoice, complete with the purchaser's name and VAT number if over R5000?

[Pete6110]

Hi all
If an agricultural training farm is a VAT vendor and receives a donation of a large piece of new equipment and the deal is that all they have to pay is the VAT portion, is that payment claimable as input VAT?

The amount is more than R5,000 and documentation meets the requirements

[Tax101]

Yes it will be claimable.