Q: A company
trades in an existing bakkie for a new bakkie. Do I have to issue a tax invoice
and pay the VAT over to SARS for the traded-in bakkie? The company is a sales
company for mining products it has no affiliations with motor vehicle trade.
A: We assume that
the company is registered as a vendor and used the bakkie for the purposes of
making taxable supplies (input deducted).
The fact that the company doesn’t trade in vehicles is irrelevant as the
bakkie is not a motor car as defined in section 1(1) of the Value-Added Tax
The trade-in by the vendor (company) is a taxable supply and
a tax invoice must be issued for the value placed on the vehicle.
Disclaimer: Nothing in
this query and answer should be construed as constituting tax advice or a tax
opinion. An expert should be consulted for advice based on the facts and
circumstances of each transaction/case. Even though great care has been taken
to ensure the accuracy of the answer, SAIT do not accept any responsibility for
consequences of decisions taken based on this query and answer. It remains your
own responsibility to consult the relevant primary resources when taking a
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.