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To be used for registrable and non-registrable goods. A vendor deducting notional input tax on moveable second-hand, repossessed or surrendered goods must ensure that all the information required in terms of section 20(8) of the Value-Added Tax Act, No.

With second-hand goods, regular purchases and sales may indicate a business, e.g. buying items at car boot sales to sell on eBay. When a business is VAT registered, it must include VAT at the standard rate of 20% unless a lower rate of VAT applies to the product, or if they use a VAT margin scheme.

Usually if you have been charged VAT on the original purchase of the equipment then you'll have to charge VAT on any subsequent sale. If you're selling second hand equipment you bought previously, then no VAT is charged on the sale. However, VAT will be due on the margin if you sell it at a profit.

Buying second-hand goods If you buy second-hand goods from a private individual you will not be charged VAT, for the obvious reason that they are not VAT registered.

The VAT on second-hand goods is a special scheme that allows businesses to calculate VAT on the difference between the selling price and the original purchase price of certain second-hand goods, rather than the full selling price.

Overview standard rate. reduced rate. second reduced rate. zero rate. livestock rate.

Overview standard rate. reduced rate. second reduced rate. zero rate. livestock rate.

The VAT Act allows a taxpayer to claim an input tax credit where VAT was paid by that taxpayer on goods that where acquired and applied for purposes other than making taxable supplies and that is subsequently applied for the purpose of making taxable supplies.