My client has accounts in our local banks that are in foreign currencies, one in USD and and one in Euro. The bank charges are in those currencies, but in their cash books they convert the transactions into local currency.
Do we account for VAT on those foreign charges even though we still convert to Rands?
Seth – CFAICBA (SA)
I think that you’d need to establish with the bank whether the charges they are levying include VAT, and also the exact SA Rand charge being levied by the bank, if this is the case.
Hope that helps!
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