Page 16 - Chapter 32 - VAT Part 2
P. 16
12.1.2. Ceasing to be a vendor: value of supply [s 10(5)]:
• Consideration for goods and rights is the lesser of:
• Cost
- of acquisition, manufacture, construction or production
- including related costs (e.g. delivery)
- including VAT
(acquired from connected person = open MV)
OR
• Open MV (on date of ceasing to be a vendor)
Limitation: Output tax limited to the extent paid!
• Consideration for creditors = amount not yet paid.
→ Work through Silke Example 32.24.
Limitation: Output limited to the input claimed!
