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If i give 10 watches free as a prize do i raise a tax invoice with vat or do invoice at zero
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hang on i paid to get an answer , please or is this site just another one of those ....
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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