Page 14 - Chapter 32 VAT Part 3
P. 14
22. Notional input on second-hand goods
Def s 1 “second-hand goods”: Fixed goods =
• Goods previously owned and used 2 nd hand goods!
• Excluding animals and gold coins (Land reform programme?)
• Gold and goods containing gold
For rules on "notional input" refer to s 1 "definition input tax"
- 2 nd hand goods (located in RSA) acquired from RSA
non-vendor (whether connected person or not)
- No actual output VAT charged (because seller is non-vendor)
- But could claim notional input
- Input [def (b)] = 14/114 of lower of:
- consideration of money OR
- open MV
- May only claim input to the extent that goods are paid for.
- Trading stock does not usually qualify. Why?
