Epicbikeshop Cape Town . .VAT refund missing!

[raptor-22]

Either way I'm sure the shop will honour their word. They're not shysters

[ahp005]

Either way I'm sure the shop will honour their word. They're not shysters

How are they not shysters if they charge customers Vat if they don't have a Vat number.

[raptor-22]

They're legally required to charge Value added tax.

[Meezo]

Seems a legit Friday thread, the bikeshop owner in on it too, I'm lock and loaded

[Scotty P]

They're legally required to charge Value added tax.

Are you sure?

 

Surely if you are not VAT registered, or haven't applied for your VAT number, you are not a VAT vendor, and therefore shouldn't charge VAT on your invoice.

 

It's another way small businesses get worked over, they pay VAT on their purchases, but can't charge VAT, and as far as I know, can't claim the legitimate business purchases back (the VAT portion) because they are not VAT vendors. So small businesses will always take a 14% knock on all business dealing, unless they too are dealing with a non VAT registered supplier.

[jcza]

Are you sure?

 

Surely if you are not VAT registered, or haven't applied for your VAT number, you are not a VAT vendor, and therefore shouldn't charge VAT on your invoice.

 

It's another way small businesses get worked over, they pay VAT on their purchases, but can't charge VAT, and as far as I know, can't claim the legitimate business purchases back (the VAT portion) because they are not VAT vendors. So small businesses will always take a 14% knock on all business dealing, unless they too are dealing with a non VAT registered supplier.

 

 

Not correct. If not registered as a VAT vendor then all prices just becomes VAT inclusive. Purchase an item for R100 + R14 VAT the cost is R114 and the selling price and profit is calculated accordingly. There is no VAT reflected on invoices to customers and they cannot claim input VAT based on this invoice.

 

There are provision in the Act that outlines when a business must register for VAT. 

[rock]

I invoice out daily for two companies, one is vat registered and the other isnt. For the one, I add VAT to my service charges the other I dont.

[Slowbee]

also an item only has VAT if the invoice says so ...

 

ie, if it reads TAX INVOICE , or something to that effect (somewhere on the piece of paper), and VAT is a line item, then you pay it over.

 

the same does not apply if the item reads INVOICE and VAT is not a line item.

 

so you buy something for a R114 from one shop and the invoice says TAX INVOICE and VAT Is listed as a line item, then it must be paid over (R14).

 

another shop selling same item at R114, gves you invoices and VAT is not line item, thats also fine, as long as they are within the SARS guidelines (yearly turnover under 1 mil)

EDIT: I also dont think this is good business practice, as when your company does regsiter for VAT, the "profits" will look somewhat different

[jcza]

I invoice out daily for two companies, one is vat registered and the other isnt. For the one, I add VAT to my service charges the other I dont.

 

I hope you are registered, if so then you should still charge VAT. The fact that the customer isn't registered means nothing. 

[Scotty P]

Not correct. If not registered as a VAT vendor then all prices just becomes VAT inclusive. Purchase an item for R100 + R14 VAT the cost is R114 and the selling price and profit is calculated accordingly. There is no VAT reflected on invoices to customers and they cannot claim input VAT based on this invoice.

 

There are proviusiness must register for VAT.

 

Which is pretty much what I said.

 

Essentially, the VAT is paid by the small businesses (on their purchases), but (barring the scenario you provided, mark up calculated on VAT inclusive purchase price) they have no recourse to claim the VAT paid on their purchases, back (or work it into the profit margin [pricing themselves out of the market versus the large businesses who have no recourse other than to register for VAT as they are over the threshold]).

[jcza]

Which is pretty much what I said.

 

Essentially, the VAT is paid by the small businesses (on their purchases), but (barring the scenario you provided, mark up calculated on VAT inclusive purchase price) they have no recourse to claim the VAT paid on their purchases, back (or work it into the profit margin [pricing themselves out of the market versus the large businesses who have no recourse other than to register for VAT as they are over the threshold]).

 

Correct, registred vendor will have 14% advantage because customer can claim back VAT. 

[Scotty P]

Correct, registred vendor will have 14% advantage because customer can claim back VAT.

 

Phew....we got there in the end.

 

Thanks jcza!

 

Right folks, semi-hijack over, nothing to see here.

 

Please take your popcorn with you.....!!!!

[jcza]

Its Friday after all, bring more pop corn 

 

Surely theres plenty potential here 

[EmptyB]

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

 

Vats what I was thinking.....

[Shebeen]

VAT threshold is R1m per year, no? surely epic klap that

[dirtypot]

I run two companies here - one is VAT registered and the other is not.  The books for the one that is not VAT registered is a LOT easier than the one that is...

 

On another note - surely the OP would not be paying VAT in his home country for the bike?  When he lands there it's his own personal used bike?  Why would he pay VAT on that?  I know that "technically" he probably should be, but there's no way that they'd know that unless he offered up that information.  I've NEVER been asked about the age/VAT status/new or used/whatever about my bikes when they've gone abroad - in any country.