Results 1 to 4 of 4

Thread: How do you charge VAT when building a new house

  1. #1
    New Member
    Join Date
    Jun 2015
    Location
    Richards Bay
    Posts
    3
    Thanks
    3
    Thanked 0 Times in 0 Posts

    How do you charge VAT when building a new house

    Hi,

    I am doing the bookkeeping for a (Pty) Ltd registered as a VAT vendor.

    We are building a new house for the first time. The agreement was that the client would pay for all the material. We are managing the site on a daily basis and charge for the labour, a professional (or builders) fee and extra's i.e. rental of equipment every fortnight. I have added VAT to the invoices. The architect who is doing the cost consolidation for the client is arguing that we can't charge VAT. I think he is wrong, but have looked everywhere and can not find a clear answer. Can anyone tell me what the correct way is to do this, please?

    Thanks

  2. #2
    Gold Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    713
    Thanks
    74
    Thanked 199 Times in 178 Posts
    Hello Reinette, perhaps this helps, although I gather your company does not own the property? https://www.saica.co.za/integritax/2...l_property.htm

    Otherwise you should refer to the SARS Guideline, it should be Chapter 6 http://www.sars.gov.za/AllDocs/OpsDo...nstruction.pdf

  3. Thank given for this post:

    Dave A (30-Aug-20), Reinette (30-Aug-20)

  4. #3
    New Member
    Join Date
    Jun 2015
    Location
    Richards Bay
    Posts
    3
    Thanks
    3
    Thanked 0 Times in 0 Posts
    Thank you. This confirms that we should be charging VAT as I thought. The question is now how do I deal with this architect that scratches out the vat on invoices and doesn't pay us the vat?

  5. #4
    Gold Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    713
    Thanks
    74
    Thanked 199 Times in 178 Posts
    I suggest you ask him for a reason and reference. I would hate to suggest that you be hard nosed about it, only to discover that he has a valid reason, because I presume this is not his first assignment.

  6. Thanks given for this post:

    Reinette (30-Aug-20)

Similar Threads

  1. Building own House - Construction Company
    By mango in forum Accounting Forum
    Replies: 1
    Last Post: 05-Oct-17, 11:11 AM
  2. Who's in Charge?
    By Leecatt in forum Electrical Contracting Industry Forum
    Replies: 29
    Last Post: 24-Dec-13, 11:40 AM
  3. [Question] VAT - when to charge
    By elaine25 in forum Tax Forum
    Replies: 8
    Last Post: 18-Jan-12, 12:54 AM
  4. Who is in charge?
    By Dave A in forum South African Politics Forum
    Replies: 18
    Last Post: 10-Jul-11, 09:47 PM
  5. Replies: 3
    Last Post: 20-Feb-10, 08:04 AM

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
  •