Purchase Invoices & Input VAT

Goal: capture supplier invoices so input VAT is claimed correctly and flows into the VAT201 return.

Steps

1. New Purchase Invoice. Search "Purchase Invoice" → New (or use the SA VAT workspace).
2. Supplier. Pick the supplier. Confirm their VAT number is on file (needed to support the input claim).
3. Add items / expenses. Add the lines. Mark capital items via the item / item group (Is Capital Goods) so they classify as capital input on the VAT201.
4. Choose the purchase tax template. Select the matching template — e.g. SA Standard Rated Purchases 15%, SA Capital Purchases 15%, SA Capital Imports 15%, or SA Other Imports 15%. For non-VAT or non-deductible purchases, use a 0%/non-deductible template.
5. Check the input VAT line. Confirm 15% input VAT posts to the VAT Input account for standard purchases.
6. Save and Submit.

Getting the classification right

The VAT201 separates input tax into capital and other goods, and local vs imported. Picking the correct purchase template (and flagging capital item groups) is what populates those boxes correctly. If you're unsure, check the item's VAT category and the template name.

Non-VAT and non-deductible purchases

• Supplier not VAT-registered: use a 0% template so no input tax is claimed.
• Non-deductible VAT (e.g. entertainment, certain motor vehicles): use the appropriate non-deductible treatment so it isn't claimed as input tax.

After submitting

• The purchase feeds the period's VAT201 Return as input tax.
• As with sales, submitted purchase documents can't be deleted — cancel/amend or use a debit note to correct.

Check

• Input VAT posts to the VAT Input account at the right rate.
• Capital purchases are flagged so they land in the capital-input box.
• Supplier VAT number is on file.

Next

Pull it all together: Prepare & Review the VAT201 Return.