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VAT Apportionment in South Africa

Generally, the full amount of VAT on goods or services acquired locally or imported for the purposes of making taxable supplies can be deducted as input tax. However, if goods or services are imported or purchased locally partly for taxable and other non-taxable purposes (mixed purpose), only a portion of the VAT or notional input tax may be claimed.

If goods or services are not acquired exclusively in the course of making taxable supplies, the taxable portion and claimable input tax must be determined i.e. VAT apportionment must be considered.

Download our article and gain insight into various VAT appropriate methods.