In a past Vat
Matters: Can you claim Vat
on second-hand goods
from a non -Vat
vendor? we discussed that you can claim Vat
on second-hand goods.
As you'll remember, this Vat
is also known as notional input tax
Don't know what qualifies as notional input tax
? You're not alone! Most Vat
payers don't know either. But SARS has very specific rules for claiming notional input tax
. If you get this wrong your whole claim isn't valid.
Let's have a look at what SARS says, so you don't get caught out…
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1 Rule to claim notional input tax
You can only claim notional tax on second hand goods
. But you must make sure they meet these three requirements:
According to the Vat
Act, SARS says these items are second-hand goods:
Previously owned or used (including fixed property);
In South Africa; and
From a seller who's a South African resident.
Read on to find out what doesn't qualify…
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SARS tells us that these aren't second-hand goods:
Gold coins; and
Prospecting, mining and exploration rights.
For these goods you can't claim notional input tax
But, if the goods you deal in appear in the first list, you can go ahead and claim notional input tax
Look out for our upcoming Vat
bulletin where we'll tell you another two rules to always get your notional input tax
claims right. If you have urgent notional input tax
questions, visit the Accounting & Tax Club
. You're guaranteed to get an answer there.
Until next time,
expert: Practical Vat Loose Leaf Service