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Thread: Vat on Bidders

  1. #11
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    I think it makes more sense that the tender price from the bidder who did not add VAT be considered with VAT when evaluating who the highest scoring bidder is in all bidding suppliers. This is even more so because, this bidder who has not charged VAT would have to register in anyway should s/he/it be the successful obviously because his anticipated (income) tender amount is above the 1 million threshold.

    I just feel that if you don't consider VAT on this unregistered bidder and he wins the tender on the basis of his price being lower than all others, it would be unfair especially if later he registers and charge VAt on his invoices. This would then mean that the final amount we would be paying him would be more than what he tendered because of him charging VAT whilst the Department cannot claim such VAT.

    I will therefore go with the adding of VAT.

  2. #12
    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by BusFact View Post
    I find it very strange that Government policy would give an advantage to unregistered VAT vendors and so effectively penalise their tax collectors and payers (registered VAT vendors).
    Easily justified as a leg-up for the little guys
    Although that wasn't the real reason why the exemption was put in place, it certainly was seen as a positive indirect consequence that fell in line with broader policy to help micro and emerging businesses.

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