Microlighters

Just an observation... some ads for aircraft for sale say ".. excl VAT".

When is VAT applied and when isnt it ?

When the seller is VAT reg'd. if he not VAT reg'd there is no VAT, but if the buyer is VAT reg'd he can claim deemed input VAT.

So as non registered seler the price is R456'000. As a registered seller the price is R400'000 + VAT = R456'000

As buyer you pay R456'000 in both cases. If registered you "claim" vat of R56'000, if not you don't...

Clear as MUD...

Thanks