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In this video, Debus, a writer for the practical vet service, discusses VAT on intercompany transactions. He highlights a common question among users of the accounting and tax club regarding the handling of VAT in such scenarios, specifically who is responsible for payment and claims. Using an example, he explains that in a structure where Company A (a holding company) has three subsidiaries (B, C, and D), each with their own VAT registration, Company A receives a tax invoice for R10,000, including R1,400 in VAT. Since the invoice is in Company A's name, it claims the input VAT of R1,400. The video aims to clarify these responsibilities in intercompany VAT transactions.
