Q: Please advise if it is possible to make a sale of livestock between two vat
vendors as a zero rated transaction? (Like the sale of property between 2 vat
A: Both the sale of
land and livestock used in a farming enterprise will be a standard rated supply
between two VAT vendors. In our view both these assets will only be zero rated
where the property or trading stock is sold as part of a going concern per
s8(7) VAT Act read with s11(1)(e) VAT Act.
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 decision.
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