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VAT payable although the company has been liquidated?

Posted 13 August 2013 under Tax Q&A


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I'm selling my business property. The company has been liquidated and my VAT no deactivated. Must the buyer pay VAT over ?
Thank you Tim

Regards
Jan

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TaxTim TaxTim says:
13 August 2013 at 20:13

Is the buyer using the property for commercial or personal use?

Jan says:
13 August 2013 at 22:22

Hi Tim, the buyer is going to use it as commercial.
The VAT amount is R2.9m

TaxTim TaxTim says:
14 August 2013 at 16:59

The buyer would be able to claim the VAT portion so 14/114 of the smaller of the purchase price or the open market value would be allowed as an VAT input claim for the buyer.

Jan says:
14 August 2013 at 17:16

Hi Tim,

So if I understand you the buyer must pay the VAT?

TaxTim TaxTim says:
14 August 2013 at 17:19

The buyer would indeed pay the VAT, but then would be entitled to claim it back as part of their input process.

Jan says:
14 August 2013 at 17:38

Tim,
You the "Best". Enjoy your evening!

Tax Solutions

Jan de Beer.

TaxTim TaxTim says:
14 August 2013 at 17:46

Always happy to help! Same to you!


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