If i give 10 watches free as a prize do i raise a tax invoice with vat or do invoice at zero
I’m a moderator for this topic. It seems the Professional has left this conversation. This happens occasionally, and it's usually because the Professional thinks that someone else might be a better match for your question. I've been working hard to find a new Professional to assist you with your tax question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
hang on i paid to get an answer , please or is this site just another one of those ....
Thank you for your patience. We will continue the search for a Professional for you.
Hi and welcome to Just Answer!See VAT ruling #381 - http://www.sars.gov.za/SARSCustom/VAT%20Rulings/VAT%20Rulings%20381%20-%20399.htm
While it is related to the national lottery prizes - the same tax treatment should apply.
Prize winners are not liable to account for output tax in respect of prizes received - unless they are carrying on of an "enterprise" and prizes are payments for services.
The operator of the lottery on other competition is entitled to an input tax deduction equal to the tax fraction of amounts paid out by him as prizes or winnings.
Really did not answer my question which was simple , do i raise a tax invoice for the prize and pay the vat or do i send the product out at zero value and show a loss in balance sheet