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For auctioneers: 5 points to know when the seller ISN'T a vendor

by , 10 February 2016
If you're classed as an auctioneer, then you must deal with VAT in 2 special ways.

These 2 ways are:

1. If the seller you're acting on behalf of, ISN'T a vendor; and
2. If the seller you're acting on behalf of, IS a vendor.

Having mentioned them, here are 5 very important points to remember when the seller you're acting on behalf of ISN'T a vendor...

When the seller ISN'T a vendor

When the seller isn't a vendor, there are 5 important points to remember. They are:

When the seller ISN'T a vendor

When the seller isn't a vendor, there are 5 important points to remember. They are:

Point#1:

You and the seller can arrange that you'll charge VAT on the goods you sell.

For example, Mrs. Anderson owns a boutique and isn't registered for VAT. At the end of every year, she holds an auction to sell any excess stock. Even though she isn't a vendor, she and auctioneer decide to charge VAT on the sale of the goods.

The goods are sold including VAT, and the auctioneer pays the VAT over to SARS on his VAT return.

He then takes his fee and pays MRS. Anderson the balance, net of VAT.

Point#2:

This is then treated as if you, the auctioneer, have supplied the goods in the course of your enterprise (see the above example).
 
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Point#3:

You must account for and pay over the VAT on your VAT return.

Point#4:

You must keep records indicating the name of the seller, as well as copies of his or her ID document, a description of the goods, their quantity, the price you paid, as well as the date you acquired them.

Point#5:

Do you want to learn what the final important point is? Then simply page over to chapter A02: Agents and Auctioneers in your Practical VAT Loose Leaf Service handbook today.

If you don't already have this fantastic resource, click here now.
 
 
 
 

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