Page 17 - P6 Slide Taxation - Lecture Day 3 - VAT Part 3
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Scenario 2: 1 proviso to s 10(12)
st
Supply 2 nd hand Co A
Non-vendor (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.
