If you as a VAT vendor thought you are able to claim the VAT on just any VAT/ tax invoice you have been issued, think again.
There are many traps that VAT vendors fall into by claiming VAT on an invoice when they are not entitled to do so. It is important as a VAT vendor and business owner to manage your VAT risks and to prevent leakages as far as possible.
The fundamental requirements to claim VAT on a VAT/tax invoice are as follows:
Prior to even considering claiming VAT on an invoice, you need to be a registered VAT vendor at the time that the valid invoice was issued to you. Voluntary VAT registration is allowed if you can prove that your taxable supplies during a 12-month period exceeds R50 000. If your taxable supplies are greater than R1 million for a 12-month period, you will be compelled to register as a VAT vendor. Taxable supplies include both vatable and zero-rated supplies.