Once registered, you can claim back most VAT paid on business purchases — but SARS has strict tax invoice requirements that trip up many first-time claimants.
Last updated: June 2026
Once VAT-registered, you can claim input tax for the VAT paid on purchases used in making taxable supplies — reducing the net amount you remit to SARS. Your net VAT payable is essentially (output VAT you collected from customers) minus (input tax on your eligible business purchases).
SARS has specific documentary requirements for input tax claims, with stricter rules for larger amounts. A full tax invoice (showing the supplier’s VAT number, both parties’ details, a description of goods/services, and the VAT charged) is generally required for claims exceeding R5,000. For smaller amounts, an abridged tax invoice with fewer required details may suffice. Claiming input tax without proper supporting documentation is a common reason claims are disallowed on audit.
Certain categories are specifically denied for input tax claims regardless of business use, including most entertainment expenses and passenger motor vehicles (with specific exceptions for certain business uses like driving instruction or car hire businesses). Always check the denied input tax list before assuming a purchase is claimable, since claiming denied categories is a common and easily avoidable compliance error.
Your input tax claim can be disallowed on audit if you lack the required documentation — a full tax invoice for claims over R5,000, or at least an abridged tax invoice for smaller amounts.
Generally restricted, subject to specific conditions under South African VAT law for pre-registration goods and services — check current provisions carefully.
Generally within 5 years of the relevant tax period, though claiming as close to the actual period as possible is best practice to avoid documentation and reconciliation issues.
Yes, most entertainment expenses and passenger motor vehicles are denied categories, subject to specific exceptions for certain business uses.
No, abridged tax invoices are generally only acceptable for smaller-value claims (under R5,000) — larger claims require a full tax invoice with complete supplier and transaction details.
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