VAT claim on Second Hand Motor Car

[jacovanzyl8324]

Does S18.4(c) apply to a Co / Trust / Farmer who buys a second had Motor Car as defined from a dealer with the intention to use for Vatable supplies?
Can he claim the notional Input via the new VAT264 (Does the dealer need to submit the VAT264 or purchaser)

[flaker]

1) The vat 264 is never submitted to SARS but kept for record purposes
2) If a vehicle is bought from a vat registered motor dealer, then that dealer issues a vat invoice, no need for a vat 264,
3)If you buy a vehicle privately (not from a vat registered dealer or seller) then in that case a vat 264 form needs to be completed for notional input vat claim, however
4)Not all motor vehicles for use of vat supplies qualify for input vat claim. Motor cars don't. Certain bakkies & trucks do. (Double cab bakkies do not)

Hope this helps

[jacovanzyl8324]

Thanks Flaker for your quick response.

Thanks for point 1 to 3, it clears that.

Point 4 however is the part I need clarity on.
I'm familiar with the "Motor Car" definition according to the VAT act, however does the Second Hand Rule not override that?
Section 18.4 (c)...second-hand goods

means-

a)goods which were previously owned and used; or

b)in respect of the transfer of a unit in the circumstances referred to in Item 8 of Schedule 1 to the Share Blocks Control Act, such unit,

but does not include-

i)animals;

ii)gold coins contemplated in section 11(1)(k);

iii)any prospecting right, mining right, exploration right, production right, mining permit, retention permit or reconnaissance permit as defined in section 1 of the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002), or any reconnaissance permission contemplated in section 14 of that Act granted or renewed in terms of that Act or received upon conversion pursuant to Schedule II, except when that prospecting right, mining right, exploration right, production right or interest in that right is transferred, ceded, let, sublet, alienated, varied or otherwise disposed of as contemplated in section 11 of the Mineral and Petroleum Resources Development Act, 2002;

iv)any fixed property acquired in terms of the Provision of Land and Assistance Act, 1993 (Act No. 126 of 1993); and

v)any fixed property acquired in terms of section 42E of the Restitution of Land Rights Act, 1994 (Act No. 22 of 1994);

[flaker]

To my knowledge whether new or secondhand vehicle, the same rule applies. Do remember, however, when you sell the vehicle, vat would have to be paid on the selling price.

[Dave A]

I'm familiar with the "Motor Car" definition according to the VAT act, however does the Second Hand Rule not override that?

Only when it comes to registered motor vehicle vendors. In their case, the vehicle is stock in trade, not a fixed asset.

[jacovanzyl8324]

thanks