Page 37 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1
P. 37
Example
The Golfer (Pty) Ltd ordered various golfing equipment with
a cost price and a value for customs duty purposes of R250
000 for importation from the USA. Import surcharges of R7
400 were levied. The order from The Golfer (Pty) Ltd was
cancelled and the golfing equipment was stored in a licensed
Customs and Excise storage warehouse situated in the
Republic. After six months the market changed and The
Golfer (Pty) Ltd bought the golfing equipment as an in-bond
sale for R300 000. The golfing equipment was subsequently
entered for home consumption.
Determine the VAT consequences of the in-bond
sale and subsequent importation.
