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In this tutorial, Debus discusses VAT on intercompany transactions, addressing common queries from users of the accounting and tax club. Using an example, he explains how VAT works within a group of companies. Company A, a holding company with subsidiaries B, C, and D, receives a tax invoice of 10,000 rand (plus 1,400 rand VAT), totaling 11,400 rand. Since the invoice is issued in Company A's name, it can claim the input VAT of 1,400 rand. This scenario illustrates the complexities and responsibilities regarding VAT among intercompany transactions, emphasizing the importance of understanding who owes or claims VAT in such situations.
