VAT on Imports & Special Zones SARS Customs & Excise form

Second-Hand Goods Declaration VAT264

Supports a notional input-VAT claim when a VAT vendor buys second-hand goods from a non-vendor.

Last updated: 25 September 2026

Quick answer

VAT264 — A declaration completed when a VAT-registered vendor buys second-hand goods from a seller who is not VAT-registered. Because the seller cannot issue a tax invoice, the VAT Act (Section 20(8)) allows the buyer to claim a notional input tax credit of 15/115 of the purchase price. The VAT264 is your proof of entitlement — kept in your VAT records, not submitted to SARS, but required for audit. The deduction is claimed on your VAT201 return.

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Official SARS form · verified current 25 September 2026 · View source on SARS ↗

How notional input VAT works

When a VAT-registered business buys second-hand goods from an unregistered private seller, no VAT appears on the invoice — the seller isn't in the VAT system and cannot charge output tax. But those goods carried VAT when they were originally manufactured and sold. To avoid penalising the buyer, the VAT Act (Section 20(8) read with Section 16(3)(b)) grants a notional input tax credit equal to the tax fraction of the purchase price.

The formula

Notional input VAT = 15 ÷ 115 × consideration paid

Use the consideration actually paid, unless it exceeds the open market value — in that case, use the lower open market value. Example: goods purchased for R23,000 → notional input tax = R3,000.

This is not a refund from SARS. It reduces your net VAT liability on your next VAT201 return, the same way a standard input tax credit does. The VAT264 stays in your records — produce it if audited.

Who uses the VAT264

Common scenarios:

Art and antique dealers buying works from private collectors who are not VAT-registered
Used equipment dealers and manufacturers purchasing second-hand machinery from private sellers
Motor vehicle dealers buying used vehicles from members of the public
Any VAT vendor acquiring second-hand goods for taxable business use from an unregistered seller

What the form must capture

The VAT264 must be completed at the time of purchase and signed by the seller. Required fields:

Seller's full name and address
Seller's SA ID number or business registration number (confirming non-vendor status)
Description of the second-hand goods
Date of supply and consideration paid
Seller's signature

An incomplete declaration disqualifies the notional input tax claim — SARS requires all fields to be present before allowing the deduction on audit.

What the VAT264 does not cover

Imported goods: If you import second-hand goods from outside South Africa, import VAT is charged at the border through customs clearance and recovered via a standard input tax credit — the VAT264 does not apply to imported goods.
Repossessed goods: Goods repossessed by credit providers under a credit agreement are governed by separate VAT Act provisions, not Section 20(8).
Goods from VAT-registered sellers: If the seller is VAT-registered, they issue a standard tax invoice and charge VAT — no notional credit and no VAT264 required.

Key facts

When you need itYou buy used goods from someone not registered for VAT and want to claim notional input VAT.

Where to submitKept with your VAT records.

Does customs stamp it?NO PHYSICAL STAMPNo — a record-keeping document.

Commonly confused withA domestic VAT mechanism, often relevant to dealers — not about importing.

Frequently asked questions

What is the VAT264?

Supports a notional input-VAT claim when a VAT vendor buys second-hand goods from a non-vendor.

When and where do I lodge the VAT264?

You buy used goods from someone not registered for VAT and want to claim notional input VAT. Kept with your VAT records.

Does customs stamp the VAT264?

No. The VAT264 is a record-keeping document. It is not lodged with SARS at time of sale, not submitted with your VAT201 (though the deduction appears there), and not stamped by customs. Keep it on file and produce it if SARS requests it during an audit of your input tax deductions.

How do I calculate the notional input VAT amount?

Multiply the consideration paid by 15/115. If you paid R23,000 for second-hand goods, the notional input tax is R23,000 × 15/115 = R3,000. If you paid more than the open market value of the goods, use the lower open market value figure instead. Claim this amount on your next VAT201 return as input tax — it is not a separate SARS application.

Can I use the VAT264 for imported second-hand goods?

No. The VAT264 notional input tax applies to second-hand goods acquired within South Africa from unregistered domestic sellers. If you import second-hand goods from outside South Africa, import VAT is assessed at the border as part of customs clearance and is recovered via a standard input tax credit — no VAT264 is involved.

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This page is a plain-English guide, not legal or customs advice. Form names and procedures are verified against the official SARS "Find a Form" index at the time of publication, but requirements change — always confirm on sars.gov.za or with a registered customs broker before lodging.