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Can you still claim an input VAT credit on 2nd hand jewellery bought from non-vendors?

09 April 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: Please can you let me know if the proposed amendment for the claiming of input tax from a non VAT vendor went through in the Budget announcement. I have a few clients that just want to prepare for it, and I cannot find any document after the 2014 budget speech proposal.

A: Please see section 95(1)(b) of the 2014 Taxation Laws Amendment Act below:

http://www.sars.gov.za/AllDocs/LegalDoclib/AmendActs/LAPD-LPrim-AA-2014-02%20-%20Taxation%20Laws%20Amendment%20Act%2043%20of%202014%20GG%2038405.pdf

You can see ‘goods containing gold’ have now also been excluded from the definition of 2nd hand goods; thereby disallowing a notional input VAT credit on such items purchased from non-vendors.

Other than this, there are no other changes regarding this issue.

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


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