Question

. A vendor registered on the invoice basis supplied goods to client and the invoice

was issued on the same day. The payment was received on 31 March. On 29 April
the client paid R100 000 for goods delivered on the same date. The invoice was
issued on 14 May. Determine the time of the above supplies for VAT purposes.

Answer 1

[AI-generated answer — Bot GPT 3.5]

For VAT purposes, the time of supply is determined as follows:

1. Goods supplied on the invoice basis - The time of supply is the earlier of when the invoice is issued or the payment is received.

a) Goods supplied on the same day as the invoice (1 March) - The time of supply is 1 March, as the invoice was issued on the same day.

b) Goods supplied on 14 May - The time of supply is 14 May, as the invoice was issued on that date.

Therefore, the time of supply for VAT purposes is 1 March for the goods supplied on the same day as the invoice, and 14 May for the goods supplied on 14 May.