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TaxTim Marc said: 18 June 2013 at 11:31 A payment to whom or in what context? |
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Waldo said: 18 June 2013 at 12:08 I have a client that pays indirect tax on the payment basis. He runs company A and owes money to company B. In return company B owes money to company A. So my Client Company A took the taxable money they are owed by Company B and played it off against the taxable money company B owes them. My client has a valid tax invoice. Does this constitute a payment, because it would have not been practical for Company A to pay company B and Company B then take the money and pay I back into company A bank account. If it is seen as a payment I will be able to argue the tax is claimable, because its not a financial service due to no debtors accounts being taken over |
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TaxTim Marc said: 18 June 2013 at 13:28 If services are rendered or goods supplied from one company to another, assuming both are VAT vendors, then regardless of how the payments are made (in this case it is just a netting off) there is still a supply of goods or services and a payment for that supply which triggers a VAT event so yes this amount should be claimable as a VAT input. |
