SAICA: Notional Input VAT Guide

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SAICA: Notional Input VAT Guide

• 21 January 2026
• Tax
• South African Accounting Academy

Summary:
The South African Institute of Chartered Accountants (SAICA) has updated and published their Notional Input VAT Guide.

Article:

This Guide (version 3) provides an overview of the requirements relating to a vendor’s entitlement to a deduction of notional input tax (the input tax as envisaged in paragraph (b) of the Value-Added Tax Act, No. 89 of 1991 (the VAT Act)), the calculation of the amount of notional input tax and the time when the deduction may be made. 

In addition, this Guide briefly outlines some consequential matters which should be taken into account and would have to be considered in more detail in specific secondhand goods acquisitions. 

Contents:

1. Introduction
2. Purpose, scope and limitations of the guide
3. Legislation
4. Terminology
5. Entitlement of notional input tax
6. Deduction of notional input tax
7. Events, subsequent to the deduction of notional input tax
8. Deregistration
9. General
10. Conclusion

Click here to download the 30-page document:

https://saicawebprstorage.blob.core.windows.net/uploads/resources/Notional-Input-VAT-Guide-2025.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

• Practitioners should adhere to the tax consequences regarding Notional Input VAT.
• Tax practitioners, Auditors, Independent Reviewers and Accountants should always be aware of the latest publications issued by regulators, professional bodies and standard-setting boards, such as SAICA, as well as the contents of any practical considerations contained within this guide.

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