Accounting and Tax Club.co.za Q&A
Complete your IT14SD form in 6 easy steps

Click here to find out more

"How do I apply apportionment?"

I battle with apportionment. How do I do it correctly?

Added to
  • Vat basics
  • How to apply apportionment? what is the different apportionment methods?

Anna
 User  Anna asked on 25 Feb. 2013

 

1 answer

kallievander
 User kallievander answered question on 06 Mar. 2013
Vote answer I appreciate this answer [0] I am unhappy with this answer [0]
Dear Anna,
As you know, the basic principle is that you can claim input tax deductions on the goods you buy and services you obtain, in so far as they are used in your business to make taxable supplies. Even supplies made at the zero rate. But not on those used to make exempt supplies, if any!

The SARS approved method is the turnover method of apportionment.

The formula is -
Total value of taxable supplies / Total value of all supplies = input tax apportionment %

NOTE
Value of taxable supplies excludes Vat
Taxable supplies include zero rated supplies.
'All supplies' includes taxable, zero-rated, exempt and non-supplies
If the calculated % exceeds 95%, you may claim the full amount of Vat.

You must obtain written approval from SARS to apply another apportionment method, such as the floor space method.

Happy apportioning!

Kallie



Other questions about Vat basics



RSS Facebook Share the experience
Accounting and Tax Club.co.za

Topics
  • Accounting
  • Allowances and deductions
  • Audit/Assessment
  • Capital gains tax
  • Dividends
  • Donations Tax
  • Exports and imports
  • Fringe benefits
  • Input tax
  • Provisional tax
  • Sars
  • Tax basics
  • Tax invoices
  • Tax returns
  • Vat basics
  • Vat registrations
  • Vat return
Premium Services
  • Company Registration
  • Objections
  • PAYE
  • Trusts
  • Turnover Tax
  • UIF
  • Wear and Tear
TOP ANSWERS 2016
If a employee is away overnight and has ot pay for his own meals (more than R50) but gets reimbursed can the Vat be...[read more]
Published on 13 Oct. 2016 1 answer
Procedure to get vat input in West Bangal against foreign business tour expenses.[read more]
Published on 31 Oct. 2016 1 answer
Good day, I have a client who rendered a service through a company to another SA registered company. The service was...[read more]
Published on 25 Oct. 2016 1 answer
What must I do to have my tax number with out going to sars[read more]
Published on 04 Oct. 2016 1 answer
Good day can u please help me i forgot my tax no can u sand it to me 0842175219 thank u Christiaan Welman my id is...[read more]
Published on 01 Oct. 2016 2 answers
What account should the penalty and interest portion charged by SARS be allocated to? I was told by a SARS Auditor that...[read more]
Published on 19 Sep. 2016 3 answers
Video Archive Video club

Your library of Free eReports
View full library
SARS Tax Tables 2016/2017 Download


Simply click download for your FREE SARS Tax Tables 2016/2017 to ensure you calculate your tax correctly.