Epicbikeshop Cape Town . .VAT refund missing!

[Jakkals.]

Okay, lets start focussing on penalties and interest if the VAT was not paid over to SARS... 

[Hennie VR]

You stalker

 

Hahaha. If he puts a link to his Strava profile in his signature then I suppose he wants people to have a look.

[YUMEYA]

Sorry OP no love here friend  . South Africans never claim back their tax when spending money in a foreign country, it is below us. And we always declare our goodies at customs because nothing brings us more joy than paying duties and vat.   Viva nkandla Viva!!

[Americo]

'he knew very well he was lying' that seems a gross assumption to me and it could well be that he was not aware you would have issues and he made a statement based on his knowledge rather than being an export expert?

 

I could be wrong but .... no that doesn't happen

I understand but what would you think if a shop tells you that you'll get the VAT back and then they give you an invoice without VAT? On the top of all once the tax refund office asked them for a proper invoice with a VAT and they sent a new invoice with a VAT number that it s actually not valid?

 

The bike seller is on this forum and already wrote once on this topic so he is following the conversation and can clarify everything

[Omar]

a qucik question to the tax experts - is the Epic Bike shop allowed to import bikes or be an agent for a brand if they are not vat registered?

[Edge_Design]

a qucik question to the tax experts - is the Epic Bike shop allowed to import bikes or be an agent for a brand if they are not vat registered?

 

It would be very surprising if they weren't actually VAT registered - that fact has yet to be established. Their turnover must exceed the threshold (or reasonably be expected to if it hasn't yet) so registration would be compulsory. You wouldn't need to be registered to import or to act as an agent, but it wouldn't make financial sense to fill those functions and not be registered (your customers want to claim their VAT if you're a wholesaler and you would hope your sales exceed R1m p.a.). Assuming your sales are below the threshold then as a bike shop supplying to the consumer, there is probably no real difference whether you register or not.

[Hennie VR]

a qucik question to the tax experts - is the Epic Bike shop allowed to import bikes or be an agent for a brand if they are not vat registered?

 

I don't think Epic Bike shop import the bikes themselves.

Usually each brand have their agents/distributors in a country and the bike shops get their bikes from them. 

 

Omnico is one name that comes to mind.

[EmptyB]

Hahaha. If he puts a link to his Strava profile in his signature then I suppose he wants people to have a look.

Too true! Good investigative work....

[DJR]

Will the SARS/customs people at the airport re-fund a foreign visitor with a valid tax invoice with a valid Vat number, if the vendors VAT affairs are NOT in order with SARS? (Say, if SARS recon that the VAT from the vendor has not been paid to them or that there were dodgy VAT claims made?) 

[YUMEYA]

I understand but what would you think if a shop tells you that you'll get the VAT back and then they give you an invoice without VAT? On the top of all once the tax refund office asked them for a proper invoice with a VAT and they sent a new invoice with a VAT number that it s actually not valid?

 

The bike seller is on this forum and already wrote once on this topic so he is following the conversation and can clarify everything

None of that matters here. You lost this fight when you purchased an Italian bike in South Africa and you from Italy.   I hope you did not eat Italian food during your stay in SA!!! 

[NotSoBigBen]

I would imagine that the said bike shop would also need to establish and ensure the mechanism for them to get re-imbursed by SARS after they give you your VAT back? Unlike the airport where SARS are effectively giving it straight back. Of praat ek bollie?

otherwise they would effectively be giving you a 14% discount on the bike .....

[YUMEYA]

Can you believe this crap.. I cant imagine South Africans supporting this store. I am so mad right now    How dare you buy Mrs Balls in the UK?

 

www.southafricanshop.co.uk

 

The South African Shop is part of Jumbo Importers ltd. Jumbo is the biggest importer of South African food in the UK. It was established in the UK in 2003. We have 4 shops across London and a Butchery on site and our Colnbrook branch. We always strive for excellence and perfection. Our main aim is to please our customers and we will go the extra mile.

We offer our customers retail buying (single products) or to buy at our wholesale price (minimum 3 products of a kind).The wholesale buying will only be available on our website. Make us your PICK n PAY away from home! ( they can not be serious)

[Americo]

I would imagine that the said bike shop would also need to establish and ensure the mechanism for them to get re-imbursed by SARS after they give you your VAT back? Unlike the airport where SARS are effectively giving it straight back. Of praat ek bollie?

 

otherwise they would effectively be giving you a 14% discount on the bike .....

That's exactly what the lady at the VAT refund in the airport told them,if their VAT is not valid they have to give me back the 14% from their pocket! but that didn't happen 

[Marius]

Google says:

 

Until you receive your VAT registration number you must not charge VAT, or show VAT as a separate item on your invoices. To make sure that you do not lose income in the period after you applied for VAT registration but before you receive your VAT registration number, you should increase your prices by the VAT rate relevant for your goods or services, and explain to your customers why you are doing so.

Once you are registered, you can then reissue those invoices, amended to show your VAT registration number and the VAT charged. This will ensure that your VAT-registered customers can reclaim the VAT that they have paid.

Lots of businesses get this wrong although mostly it doesn't matter as long as you re-issue the invoice asap with the VAT no. on it.

The main problem comes when a business doesn't make allowance for the VAT from the date they applied to be registered. Then they either have to invoice again adding the VAT and ask the customer nicely if they will pay the VAT, or the total invoice will assumed to include VAT and you pay it out of your own pocket.

[Reg Lizard]

Must be small tenders then ...

jip R50-100k

[Skylark]

I would imagine that the said bike shop would also need to establish and ensure the mechanism for them to get re-imbursed by SARS after they give you your VAT back? Unlike the airport where SARS are effectively giving it straight back. Of praat ek bollie?

 

otherwise they would effectively be giving you a 14% discount on the bike .....

Sars giving a tourist a vat refund has got zero to do with the retailer. You pay the retailer the agreed price including the vat, Sars refunds the vat portion to the tourist upon leaving the country out of their own pocket, safe in the knowledge they have/will get the vat originally charged back from the retailer as per the retailers normal vat returns.

 

Zilla/Epicbikeshop is liking a whole lot of posts but not saying much. How did the op find himself in the predicament he did, vat refunds are hardly unusual occurrences, provide valid documentation and you get your refund. The bike shop is clearly at fault here if they led the op to believe he could use their invoice to claim the vat back which he obviously couldn't.

 

Perhaps an honest mistake on their part? If so how are they going to make it right for the op?