Vat claim on pre vat registration

[vamily0804]

Hi all,

If a business deside to register for vat after a year of trading,

could one claim input vat on expenses before the registration?

Must one declare the output vat too?

[Dave A]

You can claim input VAT on capital items held at the date of VAT registration with your first return. Exactly what that might include depends on the nature of your business. Examples include stock, commercial vehicles, computers, shopfittings...

I think you have to give an estimate on these items along with the registration application if you are an exisiting business.

[Sieg]

You will also be able to claim any Transfer Duty that was paid by the Vendor on the acquisition of fixed property used by the VAT Vendor for its business, as if it had been VAT that was paid. This is the so-called "notional input credit".

Sieg

[geraldenek]

If you register for VAT and it is a voluntary registration - you can claim only capital expenditure prior to registration and you can not backdate the registration.

If you register because it is compulsory - you can back date everything, but you have to declare all your output for this period. If you have a return for a period and you had to pay back money to SARS just remember that they will charge you a penalty and interest. If you have to get back money from them, there are no penalties or interest.

[Dave A]

If you register because it is compulsory - you can back date everything,

That is interesting. Would the back-dating method be optional then?

I'm guessing claiming input VAT for assets on hand would be the most favourable method of conversion in most instances. But you never know - there could be exceptions.