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"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

 User  HLA asked on 10 Oct. 2013


1 answer

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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).

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