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How far back into the past a vendor may claim input VAT

19 March 2014   (1 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

The answer to this query is based on legislation as at 2014/03/19.

Q: Problem: Client did not claim input VAT for 200602.

The law: Proviso (1) to Section 16(3)(n) of the VAT Act states that: "where any vendor is entitled under the preceding provisions of this subsection to deduct any amount in respect of any tax period from the said sum, the vendor may deduct that amount from the amount of output tax attributable to a later tax period which ends no later than five years after the end of the tax period during which-

aa) the tax invoice for that supply should have been issued as contemplated in section 20(1);

bb) goods were entered for home consumption in terms of the Customs and Excise Act;

cc) second-hand goods were acquired or goods as contemplated in section 8(10) were repossessed; dd) the agent should have notified the principal as contemplated in section 54(3); or

ee) in any other case, the vendor for the first time became entitled to such deduction, notwithstanding the documentary proof that the vendor must be in possession of in terms of subsection (2) of this section;”

Section 104 (1) and (5)(b) of the TAAct states that: "A taxpayer who is aggrieved by an assessment made in respect of the taxpayer may object to the assessment” and "The period for objection must not be so extended— if more than three years have lapsed from the date of assessment or the ‘decision’;”

Discussion: Thus according to the VAT Act a VAT vendor may deduct input VAT in a VAT period which is not older than 5 years in relation to another VAT period in which the deduction was supposed to be claimed in the first place with reference for example to the date on the supplier invoice. Thus in relation to VAT that was supposed to be claimed in 2006/02 the latest VAT period in which the input could have been claimed was 2011/02. Then according to the TAAct a taxpayer may object to a VAT assessment not older than 3 years.

The objection in this case will be in the form of a "request for correction” on the e-filing website regarding the 2011/02 VAT period, where input VAT figures pertaining to the 2006/02 VAT period will be claimed in the 2011/02 via a request for correction.

Conclusion: In effect the VAT vendor is therefore able to claim a VAT input which pertains to a period 8 years in the past a demonstrated above.

Question: Do you agree with the above?

A: I agree with your interpretation of the VAT as well as TAA – this is possible.


Catherina M. Coetsee says...
Posted 04 April 2016
This is a new company and they have been trading for 6 months and want to register for Vat..Can they claim back there input Vat...


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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