Page 17 - Chapter 32 VAT Part 3
P. 17
Scenario 2: 1 proviso to s 10(12)
st
Co A
Non-vendor Supply 2 nd hand (VAT vendor)
goods in RSA
Connected Supply second hand
persons goods in RSA
Co B Export 2 nd hand
(VAT vendor)
goods to export
• Will Co B’s export qualify as a zero rated supply? country
No.
Because Co A and Co B are connected persons the “consideration in
money” for the export will be deemed to be the greater of:
→ Co B‟s purchase price from Co A OR
→ Co A‟s purchuse price from the non-vendor.
→ See Silke Example 32.50.
