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vat on second hand cars
Grateful
#1 Posted : Monday, November 02, 2009 6:39:00 AM
Rank: Member

Joined: 10/21/2009
Posts: 28
suppose my company buys cars pays vat on them and uses the vehicles for sometime,then we want to dispose them,should our selling price be inclusive of VAT ? ie is there VAT on second hand cars in kenya?

SK accountants? / Mukiha?



we want peace... The only substitute to intelligence is silence
niando
#2 Posted : Monday, November 02, 2009 7:15:00 AM
Rank: Member

Joined: 6/5/2008
Posts: 174
YES

For example cost new Ksh 400,000 plus vat of (16%) ksh. 64000.


If solely for business use you could claim back the 64,000.


If you intent to resell 100000 ex Vat,you can quote 116000 ie 16% vat and pay the 16000 to KRA

However you cannot charge vat for non commercial vehicles.
For bookkeeping and bank loan interest recalculation try us:niando.becia@gmail.com
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