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Use this handy guide to correctly document your input tax claim

by , 13 October 2014
As a Vat vendor, you can claim input tax on any expenses you incur to run your business. But you need to prove your claim to SARS with the right documents.

The trouble comes in when you have different types of good or services that you want to claim you need different documents to substantiate each one.

To help you ensure SARS doesn't reject your input tax claim, we're revealing the documents you'll need for three different types of claims...

 

Here are the documents you'll need for these three types of input tax claims

 
1. Normal goods and services: Tax invoice
 
2. Second-hand goods: You need the following documents to claim notional input tax on second-hand goods:
 
a) If the supplier is a natural person, you need a copy of his ID book to verify his ID number and his name. 
b) If the supplier isn't a natural person, you need the ID number of the person that represents him regarding the supply and you need a copy of his ID book to verify it.
c) The legally-allocated registration number of the supplier (not the natural person) that must have the business letterhead or other similar document to verify it.
 
You'll also need:
 
b) The address of the supplier;
c) The date you acquired or repossessed the goods;
d) The description of the goods;
e) The quantity or volume of the goods; and
f) The consideration for the supply.
 
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3. Imported goods: 
a) Bill of entry.
b) Proof that you paid the Vat for importing the good into the country to the SARS customs.
 
If you use an import agent that has these documents, he must give you the following, in writing, within 21 days:
 
1. A full and proper description of the goods;
2. The quantity or volume of the goods or services supplied; and
3. Either the value of the supply, the amount of tax and the price for the supply. Or the price for the supply and either the amount of the tax, or a statement that it includes Vat and the Vat rate.
 
If you have these documents, you'll have no trouble claiming your money back from SARS.
 


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