A forced sale by auction is subject to VAT

“It is vital to note that sale by auction is referred to as ‘a hostile sale’ where the property of the debtor is sold by force. The creditor steps in the foot of the debtor to effect the sale for the debtor. It then follows that the creditor has to discharge all duties that debtor would have discharged and that includes paying taxes and levies on the property in issue. The creditor then ought to recover the debt and any balance remitted to the debtor. Secondly, the Appellant herein being the creditor and the vehicles being charged in favour of the Appellant, it means that the Appellant acquired the right to sale the vehicles to recover loan amounts. The Appellant became a seller within the meaning of Section 2 (1) of VAT."