Good day.
I have a client who opened a company registered it for vat.
He bought a land and is building a house residential property in the company.
Now he is planning to claim all approved vat invoices in the company
I have asked him is it an investment property to sell later. He said he was going to keep it for a while
Now my questions are:
1 do we just claim vat refunds all the months the construction goes on? Will sars not enquire what's going on? As there will be no sales.
2 if I claim the vat will it be capital in nature as investment property? Or just cost of sales?
I think investment property as it adds to the value of the property.
Excuss this question as I am a little out of touch.
I thank all that reply in advance
Kind regards
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