Accounting and Tax Club.co.za Q&A
Has SARS sent YOU a nasty penalty assessment because your provisional taxes were incorrect?

Find out what to do here
 

"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
Why do we have the Unemployment Insurance Fund?[read more]
Published on 30 Nov. 2015 1 answer
Hi, What is Incremental budgeting?[read more]
Published on 25 Nov. 2015 1 answer
Which is the correct way to handle an international trip undertaken by a director under cover of an "educational"? And...[read more]
Published on 24 Nov. 2015 3 answers
Hello, I was very unhappy with a SARS assessment, so I decided to lodge and objection via eFiling. What happens now?[read more]
Published on 24 Nov. 2015 1 answer
Who can apply for a Binding Private Ruling?[read more]
Published on 01 Dec. 2015 1 answer
Do I need an export licence to export zero rated services[read more]
Published on 01 Dec. 2015 2 answers
Video Archive Video club

X
FREE REPORT

Zero-Rated VAT:
 I'm going to tell you what a zero-rated supply is, and 16 supplies of goods where you can apply 0 per cent VAT.

Just enter your email address below