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VAT on purchases prio VAT REGISTRATION
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2014/07/02 at 06:10:40 AM GMT
Posts: 1
VAT on purchases prio VAT REGISTRATION

Hi, could you please tell me as to how do you go about in claiming the VAT on purchases made before you become a VAT VENDOR and as to which one qualifies?



2014/07/04 at 06:28:43 PM GMT
Posts: 54
Vat on purchases prior to registration

Section 18(4) of the Vat Act provides that an input tax adjustment may be claimed on goods /services applied for taxable purposes which were previously applied for non taxable purposes.

The input tax adjustment amount is calculated by applying the tax fraction(14/114) to the lesser of adjusted cost or open market value of the goods. The input tax adjustment which is deductible under S16(3)(f) of the Act may be claimed in the tax period that the application of the goods takes place .

Documentary Requirements: refer Table C item E of I/Note 49(issue 2) issued by SARS.



2014/07/04 at 06:33:39 PM GMT
Posts: 54
Section 18(4) of the Vat Act provides that an input tax adjustment may be claimed on goods /services applied for taxable purposes which were previously applied for non taxable purposes.
The input tax adjustment amount is calculated by applying the tax fraction(14/114) to the lesser of adjusted cost or open market value of the goods. The input tax adjustment which is deductible under S16(3)(f) of the Act may be claimed in the tax period that the application of the goods takes place .
Documentary Requirements: refer Table C item E of I/Note 49(issue 2) issued by SARS.
Section 18(4) of the Vat Act provides that an input tax adjustment may be claimed on goods /services applied for taxable purposes which were previously applied for non taxable purposes.
The input tax adjustment amount is calculated by applying the tax fraction(14/114) to the lesser of adjusted cost or open market value of the goods. The input tax adjustment which is deductible under S16(3)(f) of the Act may be claimed in the tax period that the application of the goods takes place .
Documentary Requirements: refer Table C item E of I/Note 49(issue 2) issued by SARS.
The input tax should be deducted under the adjustments field of the Vat 201 return.


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