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Can input VAT be claimed for a VAT registration application approved in July but backdated to March

Tuesday, 20 January 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: A company applied for VAT registration in March. The application was approved in July but backdated to March. Can the expenses (input VAT) be claimed for the period March to July?

A: Section 16(2) of the VAT Act only allows an input tax credit where the tax invoice complies with section 20 of the VAT Act. However technically section 20(4)(c) of the VAT Act (i.e. in respect of the recipient vat number on invoice) only applies to registered vendors and the specific person was not such a vendor at the time of the supply and issuance of the invoice. 

We are aware that this is an ongoing problem which the legislature would need to address. Due to the cost implications for claiming inputs that are later disallowed, it is our view that you apply to SARS for a VAT ruling in terms of section 41B of the Vat Act to minimise the risk to the vendor, especially as he would have 5 years to claim the input should SARS give a positive ruling.. Note that is not an Advance Tax Ruling as applicable in the Tax Administration Act.

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.



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.

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