Print Page
News & Press: SARS operational & eFiling questions

Can a notional input VAT credit be claimed on purchases of used material from homeless persons?

Thursday, 19 March 2015   (0 Comments)
Posted by: Author: SAIT Technical
Share |

Author: SAIT Technical

Q: My client has a recycling business. He does not the manufacture paper and plastic but distributes them. The client purchases these used materials from non- vendors (basically homeless people) as he is buying rubbish paper.

Can the client claim notional input VAT on these purchases? If so, what is the procedure?

A: Your client (assuming he's a vendor) can claim notional input VAT on the purchases if he has a tax invoice to substantiate the purchase (see section 20 of the VAT Act). The tax invoice should also specify that the goods are second hand.

Additionally, the vendor must maintain records as provided for in section 20(8) of the VAT Act.

The provision states:

"...where a supplier makes a supply (not being a taxable supply) of second-hand a recipient, being a registered vendor, the recipient shall in the form as the Commissioner may prescribe, maintain a declaration by the supplier stating whether the supply is a taxable supply or not and shall further maintain sufficient records to enable the following particulars to be ascertained".

The abovementioned declaration is the VAT264 and can be accessed here:

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.

  • Tax Practitioner Registration Requirements & FAQ's
  • Rate Our Service

    Membership Management Software Powered by YourMembership  ::  Legal