VAT for individuals

[duncan drennan]

This is probably going to be a silly question....oh well

When an individual is registered for VAT, does that mean that VAT is only calculated on business transactions? Or does every trip to the shop to buy milk entitle you to claim that VAT back?

I'm certainly not interested in claiming that VAT back (eish, to much paper work!), and that pretty much means you are always paying SARS what SARS is due, so it is really more of an academic question than anything else.

[Dave A]

The underlying principle is that whatever is "inputted" in the generation of the "output" is claimable. However, teas for the staff don't count as an input cost for VAT purposes

A classic example of one of the lines between what you may claim and what you may not is entertainment. If you take clients out for a lunch, you can claim the VAT on their meals, but not on your own

Well, at least that's how it was explained to me.

[duncan drennan]

The underlying principle is that whatever is "inputted" in the generation of the "output" is claimable.

That is what I thought, just wanted to confirm it. I've only ever thought about VAT from a legal entity perspective (companies, trusts, etc.) and not really from a natural person's.

My wife has to trade under her own name due to being an occupational therapist (HPCSA rules), so everything relates directly to her and not to an entity.

What was interesting is that I couldn't find a way to add VAT to her efiling. Typically it would be under Organisation -> Tax Types, then just add the VAT number. Under her tax types the only options are income and provisional tax, no VAT. I've sent an email to the efiling department to find out about this (will report back).

[CharlesM]

That is what I thought, just wanted to confirm it. I've only ever thought about VAT from a legal entity perspective (companies, trusts, etc.) and not really from a natural person's.

My wife has to trade under her own name due to being an occupational therapist (HPCSA rules), so everything relates directly to her and not to an entity.

What was interesting is that I couldn't find a way to add VAT to her efiling. Typically it would be under Organisation -> Tax Types, then just add the VAT number. Under her tax types the only options are income and provisional tax, no VAT. I've sent an email to the efiling department to find out about this (will report back).

I registered myself for VAT recently, as I operate an online business in my own name (sole proprietorship). It was a lengthy process to get my VAT number, but I did manage somehow to add it to my efiling profile... Although I can't quite remember how - it was a bit of a struggle, but certainly is possible.

[duncan drennan]

I forgot to report back on this. I phoned SARS eFiling and they made some change on their system which allowed me to add VAT to the eFiling profile. I think what they did was change it from an individual to an organisation, which opens up some extra options.