Accounting and Tax Club.co.za Q&A
Attention small business owners: Do you want to pay less taxes?

Now you can!

"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

Gerhard Badenhorst
 Expert Gerhard Badenhorst answered question on 21 Oct. 2013
Vote answer I appreciate this answer [0] I am unhappy with this answer [0]
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 2017
We are paying marketing costs to advertise on Facebook. Can we claim VAT input? We are not getting any invoices and the...[read more]
Published on 27 Nov. 2016 1 answer
I have a client that's a judge and received allowances under this code listed above. Please advise on the deductions...[read more]
Published on 22 Nov. 2016 1 answer
Good day. We are an Educational Franchise group rendering maths and mental arithmetic classes to pre-school students as...[read more]
Published on 01 Dec. 2016 1 answer
Hi, is it possible for a vendor to backdate their invoices and raise invoices for output vat to their customers? we...[read more]
Published on 17 Jan. 2017 1 answer
hi, my name is letlhogonolo wilson motlhobatsie can you please send me my tax number because i need to submit it at...[read more]
Published on 18 Jan. 2017 1 answer
Taxpayers are expected to keep tax documentation for 5 years as per my enquiries at SARS offices. On the other hand what...[read more]
Published on 09 Dec. 2016 1 answer
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.