Epicbikeshop Cape Town . .VAT refund missing!

[Americo]

On February 2015 I bought a very nice bicycle from Epicbikeshop, before purchasing it I had a long conversation with them through emails about what I was going to buy and they assured me many times (got written emails) that once I would leave South Africa i was going to get the VAT back.

In April I left Cape Town and one week before leaving I again asked them if the invoice was fine and if I needed anything else in order to get the money back. They told me i just had to bring the Invoice with the bicycle and they would give me the money back.

 

The day I left I went earlier to the airport just in case something would go wrong. When I went to the VAT Refund office the person working there checked the bicycle and when she took a look at the invoice she told me that the VAT number of the store was missing from the letter. If I wanted to get the VAT back I had to provide them with a proper invoice. Then she actually called them and asked them to send a proper invoice with the VAT number on it, she also told them that if they charged me the VAT without having it registered they had to refund me the money. They assured her that they were going to send a proper invoice right away since we were waiting at the airport for this but after 30-40 minutes it still didn't happen. I called them again because I was in rush and they finally sent it on my email. I went to print it and when the worker at the airport checked the invoice with the VAT on it, it showed on the system that the VAT was not registered! So she told me to leave her all my information and in case the VAT was good they would inspect it and send me a debit card on my home address. I had to leave to catch my flight.

 

In July 2015 I finally get a mail from the South African Tax department saying that the VAT of the vendor has been excluded from Export Incentive Scheme therefore unable to process my claim!

I called the Epic Bike Shop and they told me that they are going to find a solution with the VAT and that they will give me back the money.

 

Spoke with them a few weeks ago and they told me that the new VAT is still in process. Is this something that often happens in South Africa? I really don't want to lose the money, they have to give me back my money for the VAT that I paid. What can I do about it?

 

I would really appreciate any suggestions,

 

Edited September 17, 2015 by Americo

[velomonatiCT]

if the vendor doesn't issue a VATable invoice with a registered VAT number printed or stamped on to it then you cannot claim VAT on exiting the country at airports etc

 

not all business are VAT registered but all local businesses (and consumers) are liable to pay it so it is charged on all retail purchases

 

if you are a tourist or taking the goods overseas you must ensure that the vendor is VAT registered and issues you a VATable invoice for your goods

 

you best hope is that they honour their word to refund you because even if the goods are now out of RSA I don't think they are under any kind of legal obligation regarding the VAT other than the agreement you struck with them

 

keep smiling be nice and hope for the best

 

Good luck !

[rock]

did you have to pay local VAT upon arrival in your home country?

[Americo]

if the vendor doesn't issue a VATable invoice with a registered VAT number printed or stamped on to it then you cannot claim VAT on exiting the country at airports etc

 

not all business are VAT registered but all local businesses (and consumers) are liable to pay it so it is charged on all retail purchases

 

if you are a tourist or taking the goods overseas you must ensure that the vendor is VAT registered and issues you a VATable invoice for your goods

 

you best hope is that they honour their word to refund you because even if the goods are now out of RSA I don't think they are under any kind of legal obligation regarding the VAT other than the agreement you struck with them

 

keep smiling be nice and hope for the best

 

Good luck !

 

But then why did they assure me that I would be able to get the VAT refund when they knew it wasn't going to happen?

 

If I knew all this there is no way I would have both the Bicycle from them and overall in Cape Town seeing that it's way overpriced ( I knew that)

[pe3nguin]

VAT vendors are entitled to issue VAT invoices with "VAT number pending" on them and once the VAT number has been issued, the original invoice can be replaced with the invoice that is approved in terms of the VAT Act.

 

Once the new VAT invoice is in order you will need to get back in touch with the VAT Refund Administrator to obtain your refund.

 

Existing legislation merely requires that the taxable supply (ie. the bike) be exported from the Republic within 90 days of the invoice date. 

 

The problem with obtaining a VAT number is that SARS promises a 3 week turnaround on these matters, but that is seldom the case. The bike shop will eventually be granted their VAT number and then you should have a claim against the VRA.

Edited September 17, 2015 by pe3nguin

[Maniac Merv]

How can someone charge you VAT when they are not VAT registered and not paying VAT to SARS ?

 

is that not illegal ?

 

just asking ??

 

its like making 14 % profit on top of the price already

[Bike Mob]

How can someone charge you VAT when they are not VAT registered and not paying VAT to SARS ?

 

is that not illegal ?

 

just asking ??

 

its like making 14 % profit on top of the price already

Regardless of whether your Invoice states the VAT or not you are paying VAT as everything includes VAT. If you are not VAT registered you cannot simply buy all your products EX VAT and then sell Ex VAT.

 

Being VAT registered simply means you may claim the input VAT against your Ouput VAT.

 

ROCK has an excellent point though, did you pay VAT in your home country or not, and was the SA 14% VAT you paid less than your home country VAT at 22%, If you are claiming VAT from SA but not paying it in your country then that is illegal.

[Maniax]

Problem is, I dont think many small business owners even understand the principles/processes/law of VAT.

They probably thought they were ok, meanwhile....

My theory woul prove true if they do refund your money.

Holding thumbs for a LBS honouring their word.

[cycologiist]

I'm sorry, its a little off topic, but can i just say thats quite the profile pic... now can you move your head out the way 

[Americo]

Regardless of whether your Invoice states the VAT or not you are paying VAT as everything includes VAT. If you are not VAT registered you cannot simply buy all your products EX VAT and then sell Ex VAT.

 

Being VAT registered simply means you may claim the input VAT against your Ouput VAT.

 

ROCK has an excellent point though, did you pay VAT in your home country or not, and was the SA 14% VAT you paid less than your home country VAT at 22%, If you are claiming VAT from SA but not paying it in your country then that is illegal.

Sorry Zilla but how come I don't recall knowing you but you know me that well that you even know that the VAT on my country is 22%? Wild guess? 

[MarcL]

My 2 cents worth...

VAT in SA is 14% as we all know. VAT in Europe is between 19 to 25% depending on country.

What this means to Joe Public is buying a like for like bike in SA should be between 5 and 10% cheaper than buying the same bike in Europe.

 

Now before you all shout me down and say how wrong I am and how expensive SA is... I've bought my last 3 bikes in SA despite living 8 months of the year in Europe so I know what I'm talking about.

 

With regards to the OTP, I suspect he was getting a killer deal if he got his VAT back as opposed to a good deal if he did not.

 

I hope the OTP does get his VAT back as he did export the bike, whether he actually pays it on the other side is another question (and I suspect not) 

 

My view from my experience....

Edited September 17, 2015 by MarcL

[MarcL]

And some VAT tips for others doing the same:

 

Make sure your invoice has the following:

The words TAX INVOICE with the number

Full details of the supplier (and company stamp to be safe)

The VAT number of the the supplier

Your Full name and Address (Not just CASH etc)

 

Then:

Leave the country within 90 days of purchase (with purchase obviously)

Have proof of payment (Eft proof or credit card proof)

Have goods for inspection

And of course be a foreigner.

 

More views from my experience.

Edited September 17, 2015 by MarcL

[milky4130]

Sorry Zilla but how come I don't recall knowing you but you know me that well that you even know that the VAT on my country is 22%? Wild guess?

he is epicbikeshop

[Americo]

My 2 cents worth...

VAT in SA is 14% as we all know. VAT in Europe is between 19 to 25% depending on country.

What this means to Joe Public is buying a like for like bike in SA should be between 5 and 10% cheaper than buying the same bike in Europe.

 

Now before you all shout me down and say how wrong I am and how expensive SA is... I've bought my last 3 bikes in SA despite living 8 months of the year in Europe so I know what I'm talking about.

 

With regards to the OTP, I suspect he was getting a killer deal if he got his VAT back as opposed to a good deal if he did not.

 

I hope the OTP does get his VAT back as he did export the bike, whether he actually pays it on the other side is another question (and I suspect not) 

 

My view from my experience....

Hi Marc

 

Sorry but that was not my case,I could have both the same bike at my country with at lest 30 % less. At the time I was going to be in Cape Town for few more months so didn't want to wait and bought it knowing it was actually more expensive. But what I was't expecting at all seeing that they assured me I'd get the VAT was that I had to go through this mess and 5 months later since I left still didn't get it.

 

@rock how come you care this much if I paid local VAT in my home country?!? making a point for @zilla and don't care about why the seller it's actually lying knowing that the VAT wasn't going to be refunded?

Edited September 17, 2015 by Americo

[MarcL]

Hi Marc

 

Sorry but that was not my case,I could have both the same bike at my country with at lest 30 % less. At the time I was going to be in Cape Town for few more months so didn't want to wait and bought it knowing it was actually more expensive. But what I was't expecting at all seeing that they assured me I'd get the VAT was that I had to go through this mess and 5 months later since I left still didn't get it.

 

@rock how come you care this much if I paid local VAT in my home country?!? making a point for @zilla and don't care about why the seller it's actually lying knowing that the VAT wasn't going to be refunded?

Americo

 

I don't know the specifics of your deal, I'm just passing on my experience with buying a bike in Europe vs SA and from my experience its cheaper even if you don't get the VAT back to buy in SA.

 

If what you say is correct, I need to find a better LBS in Europe....

 

Once all the paperwork is in order, I'm sure you's get the VAT back. Although if you see the current value of the ZAR, it won't be much in € / £ / $ etc.

[Shebeen]

I can't imagine many bikes getting exported from here to elsewhere. It sounds like the op did a lot of research into the pricing of the deal, but then put blind faith in the bike shop that the tax forms would all be correct. You've got to take some of the blame for not doing your homework correctly here.