Possible tax break for solar?

[wingnut771]

You have to declare it and pay it to SARS.

So a VAT vendor has to worry about claiming and paying VAT?

 

[10:10]

R100 000 solar import.

Customs VAT charged: R16 500
Company claims back: R16 500
Actual VAT paid: 0

Cost to customer: R100 000
VAT: 15 000
Total R115 000

If you want to remove customs VAT:

Customs VAT charged: R0
Company claims back: R0
Actual VAT paid: R0

Cost to customer: R100 000
VAT: 15 000
Total R115 000

Makes no difference if VAT is charged on an import to the end customer, and there are no duties applied to the big ticket items like panels, inverters and batteries.

If you're asking for VAT to be removed from solar that's never ever going to happen. The VAT free list is like 20 items and that's not changing.

Not just that, the only entity able to provide a completely VAT free service is government, and yet you will see on your monthly municipal bill that you are being charge VAT.

Remember, the Municipality is earning the money you are paying. Now consider that IF the municipality is the same party as the government, the government not only profit from the payment and the VAT that was charged, It also profits from all the VAT you pay on licensing fees, food and the list goes on.

Example:
Government owns Municipality, Government owns SARS and Government owns Eskom. It doesn't matter if the municipality paid SARS or Eskom because the funds are still absorbed by government. The funds are literally held by the same entity.

So now ask yourself how is it that Eskom didn't get the money from the municipality when government owns both bank accounts?

 

[zeb]

So a VAT vendor has to worry about claiming and paying VAT?

That's correct yes.

 

[STORMERSFAN]

Only for new installations from 01.04.2023 lol

 

[noxibox]

Not just that, the only entity able to provide a completely VAT free service is government, and yet you will see on your monthly municipal bill that you are being charge VAT.

Remember, the Municipality is earning the money you are paying. Now consider that IF the municipality is the same party as the government, the government not only profit from the payment and the VAT that was charged, It also profits from all the VAT you pay on licensing fees, food and the list goes on.

Example:
Government owns Municipality, Government owns SARS and Government owns Eskom. It doesn't matter if the municipality paid SARS or Eskom because the funds are still absorbed by government. The funds are literally held by the same entity.

So now ask yourself how is it that Eskom didn't get the money from the municipality when government owns both bank accounts?

Because they're two separate entities. Even if I own two companies they cannot simply dip into each other's bank accounts. If company one provides services to company two, which then fails to pay for those services, company one cannot just take the money from company two's account.

Municipalities cannot provide VAT free services because the central government mandates that those services carry VAT. It makes no difference whatsoever what party controls the municipality.

 

[SauRoNZA]

Why, you are already saving on electric

That you paid for…

The money is just shifted, the cost doesn’t magically disappear.