*****A MUST HAVE*****
Notional input tax can be confusing. And if you don't claim, you'll lose out on your input tax saving. But if you do claim without the required documents.. SARS will slap you with nasty fines and penalties.
To make sure you're compliant with all of SARS' VAT rules, I recommend the Practical Vat Loose Leaf.
It will give you all the information you need to ensure you meet not just your notional input tax obligations but all your VAT obligations too.
This concession only applies to second-hand goods, and NOT services.
Second-hand goods are defined in the VAT Act as being:
· Goods that were previously owned and used;
· Fixed property; and
· A share block share converted into a sectional title unit.
Second-hand goods are NOT:
· Animals (such as livestock);
· Gold coins issued by the South African Mint; and
· Prospecting, mining and exploration rights.
If you, the vendor, pay more than R50 for the goods, then you must keep records of the purchase, which must contain the following:
· The name and ID number of the seller, including a copy of his ID;
· If the seller is a company, the name and ID number of the person representing it, including a copy of her ID alongside the company's registration number and a company letterhead confirming the company's details;
· The seller's address;
· The date of the purchase;
· A description of the goods;
· The quantity or volume of the goods; and
· The amount which you paid for the goods.
*To learn more useful information on notional input tax, page your Practical VAT Loose Leaf Service
handbook to chapter I 03: Input tax
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