Tax & SARS

You Can't Automatically Claim VAT on Every Business Purchase

Being VAT registered doesn't mean a business can claim the VAT portion of every purchase — it generally needs to be connected to making taxable supplies and satisfy input-tax deduction requirements, with specific exclusions in the VAT Act.

"Business expense" and "VAT claimable" are not automatically the same thing. A business should distinguish between accounting expenses and expenses that qualify for an input-tax deduction under VAT rules.

Source: SARS — VAT 404 Guide for Vendors

Frequently Asked Questions

Can I claim VAT on every item bought for my business?

No.

What is input tax?

It is VAT incurred by a vendor on qualifying goods or services acquired for business purposes.

Why can an expense be deductible for income tax but not qualify for VAT?

Income-tax deductions and VAT input-tax deductions operate under different rules.

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