Accounting and Tax Club.co.za Q&A
“Your tax return can be done in 6 simple steps.”

Find out how

"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

Vote answer I appreciate this answer [0] I am unhappy with this answer [0]
kallievander
 User kallievander answered question on 06 Mar. 2013
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
Good Day Is there VAT output to be declared on winnings from Horse Bettings.. IE our client owns horses, races...[read more]
Published on 25 Apr. 2016 1 answer
If a property was purchased in 2007 and over the year converted into a short term commercial. Is it possible to claim...[read more]
Published on 30 May. 2016 1 answer
Some VAT Vendors use a postal address on their Tax Invoices. Surely this defeats the object of the exercise of ensuring...[read more]
Published on 25 Apr. 2016 1 answer
Can one claim input VAT on an employee/member of CC's medical expenses? Including optometrist and dentist bills?[read more]
Published on 03 Jun. 2016 3 answers
Good day I need to get a vat No now that i am starting to make R50-000. I do have orders For R34-000 will they give me...[read more]
Published on 05 May. 2016 1 answer
We imported goods from Zambia and paid the invoices. However, the Zambian company then issued us with debit notes...[read more]
Published on 20 Jun. 2016 1 answer
Video Archive Video club

Your library of Free eReports
View full library
What do I do if i disagree with SARS assessment?

Section 42 of the Tax Administration Act says you have the right to object to SARS in these 8 situations...Download your 
FREE report now