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Our Vat experts reveal when and how you must claim input tax

by , 06 June 2014
If you're a Vat vendor, the onus is on you to charge output tax and claim input tax as long as you can prove your claims and back them up with valid documents.

If you've read this statement and thought to yourself 'easier said than done,' you're right. And our Vat experts agree.

Today, they've decided to help you with input tax claims so you can claim every input tax credit possible without getting nasty SARS penalties and interest.

Here's their advice when it comes to when and how to claim input tax.

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Don't know when and how to claim input tax? Here's everything you need to know

Experts behind the Practical Vat Loose Leaf Service say, you must claim the input tax for your relevant tax period when you complete your Vat return.

To do this, calculate and show the amount of your input tax claim in Part B of your VAT201 return.

You must deduct your input tax against the amount of your output tax charge. The difference between these two amounts will indicate either that SARS owes you a refund OR that you owe SARS Vat.

To make things simpler for you, our experts provide you with examples that show when a refund will be due to you and when you have to pay Vat over to SARS.
 

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Two examples that show how you must claim input tax

Example 1: Sales for Jan/Feb 2012 - R228 000

Output tax: R228 000 X 14/114 = R28 000

Input tax (*) - R18 000

Vat payable to SARS - R10 000

Example 2: Sales for Mar/Apr 2012 - R171 000

Output tax R171 000 X 14/114 = R21 000

Input tax (*) - R25 000

Vat refund from SARS R4 000

Note: *Is the Vat shown on valid tax invoices in your possession.

There you have it. We hope our Vat experts have made it clear when and how to claim input tax. If you have any questions on input tax claims, ask your questions here.
 

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