Page 15 - P6 Slide Taxation - Lecture Day 3 - VAT Part 2
P. 15
12.1.1. Deemed supply: Ceasing to be a vendor
s 22(3): Normal rule:
• If already claimed input VAT (100%) on a purchase,
• but have not paid the full amount within 12 months
• must then charge output VAT on the portion not yet paid.
• Obligation not due to fact that ceased to be a vendor!
• VAT output = 14/114 x outstanding debt older than 12 months.
Proviso to s 22(3): see (ii)(dd) – If person ceases to be vendor
• Additional output VAT
• on all outstanding amounts (creditors)
• iro supplies during 12 months before person ceased to be a
vendor.
• VAT output = 14/114 x outstanding debt not paid within the last
12 months before the person ceased to be a VAT vendor.
