Accounting and Tax Club.co.za Q&A
Don’t become SARS’ victim by not completing your IT14SD correctly

Click here to see how you can complete yours correctly the first time, every time

"Can we claim Vat back for charges before our VAT registration"

We have a new company registered in June 2013. Had some start up expenses and started incurring input VAT through operations in Sept. VAT application is handed in with SARS. We will have turnover of more than R1m p.a. First money in and out of our bank account will be end Oct.

Invoices issued so far does not charge VAT, however our suppliers do charge us VAT - obviously.

Will we be able to claim back this VAT that we were charged before our VAT registration?

Added to
  • Vat registrations
  • Vat refund on input vat incurred before vat registration

HLA
 User  HLA asked on 10 Oct. 2013

 

1 answer

Vote answer I appreciate this answer [0] I am unhappy with this answer [0]
Gerhard Badenhorst
 Expert Gerhard Badenhorst answered question on 21 Oct. 2013
SARS will generally register the company retrospectively from the date of commencement of the business as indicated on the VAT registration application form. The VAT on all qualifying expenses and acquisitions subsequent to the effective date of registration may be claimed as input tax, even if the VAT registration number is issued after this date.

The VAT incurred on operating expenses prior to the effective date of VAT registration may not be claimed as input tax.

Where VAT was paid in capital goods or services acquired before the effective date of registration and such goods or services were still on hand at the effective date of registration, the VAT may be claimed as input tax on the lower of the cost or market value of such goods or services (section 18(4) of the VAT Act refers).



Other questions about Vat registrations

 


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
Our company has purchased a business from another party and has paid an amount of goodwill for the business. Our...[read more]
Published on 08 Feb. 2016 2 answers
When claiming input VAT on the purchase of fixed property, are you required to deduct the portion of land on which the...[read more]
Published on 22 Mar. 2016 1 answer
One of our Employees will use her own vehicle for business travel. The company pay fuel in full. What Rand rate / km...[read more]
Published on 22 Feb. 2016 2 answers
A client is going to service aircraft which is to a non-resident. The services will be in SA however the non-resident...[read more]
Published on 18 Mar. 2016 1 answer
We have a client that is an auctioneer and a VAT vendor. They sell animals (farms) on behalf of the seller via an...[read more]
Published on 04 Mar. 2016 2 answers
I am doing payroll in my company, some of the managers gets airtime on a monthly basis (Manually, NB#It does not show on...[read more]
Published on 08 Feb. 2016 2 answers
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