Results 1 to 8 of 8

Thread: VAT INPUT

  1. #1
    New Member
    Join Date
    Nov 2016
    Location
    Silverton
    Posts
    5
    Thanks
    0
    Thanked 0 Times in 0 Posts

    VAT INPUT

    Hi There

    1. Can the supplier refuse to add the (OUR) VAT number on previous issued Tax Invoice in case one was not a registered VAT Vendor by the time of the transaction

    For sometime now I've been facing an issue regarding the INPUT VAT, The situation is that: We bought a Truck Tractor a year ago, by the time of purchase we were Non Vendor but couple of month after the purchase we managed to register for VAT. So now the problem is that we approached the supplier asking that the Tax Invoice be amended by adding our new vat number so that the Tax Invoice can comply with VAT requirement for Tax invoice (Sec20(4) and so we can claim the INPUT since we are still within the 5years period.

    2. Since we are a registered VAT vendor now and we can claim the input within the 5years, For OUTPUT TAX purposes do we have to go back re-invoice again or Not?
    The problem I see is that if we must go back and re-invoice, the customers won't be happy and will not pay then we suddenly become indebted to SARS.

  2. #2
    Gold Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    713
    Thanks
    74
    Thanked 199 Times in 178 Posts
    Hi risgila

    I think you are misinterpreting the 5 year story; you have 5 years in which to CORRECTLY account for output VAT, or input VAT.

    VAT that you incurred prior to registration is part of your cost. VAT that you did not charge on your outputs prior to registration, is just that.

  3. #3
    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
    Is the truck tractor currently sitting in stock (you buy and sell truck tractors), or is it a fixed asset of the business (you use truck tractors in your business), or have you sold the truck tractor?

    The answer to this will affect how you could/should proceed.

  4. #4
    New Member
    Join Date
    Nov 2016
    Location
    Silverton
    Posts
    5
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Quote Originally Posted by Dave A View Post
    Is the truck tractor currently sitting in stock (you buy and sell truck tractors), or is it a fixed asset of the business (you use truck tractors in your business), or have you sold the truck tractor?

    The answer to this will affect how you could/should proceed.
    We use the truck tractors (Fixed asset) in the business to Haul Coal and mixed materials (in case of mining rehabilitations projects)

  5. #5
    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
    So the question is - can you claim input VAT upon conversion to a Vat vendor?
    I know you can for stock, for example. However when it comes to vehicles, I confess I don't know for sure - but hopefully one of the smart folks around here will.

  6. #6
    Gold Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    713
    Thanks
    74
    Thanked 199 Times in 178 Posts
    This link sheds some light on the subject:
    http://nuus.fodb.co.za/?p=986

  7. #7
    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
    Section 18 of the VAT Act is quite a read!

  8. #8
    Gold Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    713
    Thanks
    74
    Thanked 199 Times in 178 Posts
    Yes, and contains the longest sentences I have ever read.

Similar Threads

  1. Input & Output VAT
    By DaisyGirl in forum Tax Forum
    Replies: 21
    Last Post: 21-Apr-22, 12:50 PM
  2. Input tax
    By Business1 in forum Tax Forum
    Replies: 3
    Last Post: 13-May-17, 04:08 PM
  3. [Question] Input Vat Query
    By crobbertse123@gmail.com in forum Tax Forum
    Replies: 1
    Last Post: 01-Oct-15, 04:28 PM
  4. vat input or not
    By flaker in forum Tax Forum
    Replies: 7
    Last Post: 26-Oct-14, 07:22 AM
  5. [Question] Input VAT question
    By Roger15 in forum Tax Forum
    Replies: 1
    Last Post: 06-Aug-13, 12:20 PM

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
  •