Page 16 - P6 Slide Taxation - Lecture Day 3 - VAT Part 3
P. 16
Scenario 1: s 10(12) “normal rule”
Co A Export 2 nd hand goods
nd
Non-vendor Supply 2 hand (VAT vendor)
goods in RSA to an export country
• Will Co A’s export qualify as a zero rated supply?
No. ? = actual
consideration
Co A‟s output = 14/114 x purchase price paid by Co A
paid by Co A to non-vendor [s 10(12)]
Problem: Co A realises a large profit on the export transaction. Should‟nt
the output tax be influenced by a high or low profit margin?
→ See Silke Example 32.49.
