Is this a valid tax invoice?
We all know that you can claim input tax for any amount less than R5 000, with an abbreviated, or shortened tax invoice. This means the name, address and VAT number of the buyer doesn't have to appear on the tax invoice. Essentially, it can be made out as 'cash'.
Now have a look at this abbreviated tax invoice below. What do you think is glaringly wrong with it?
*************Errors in your tax invoices could cost you thousands!
Errors in your tax invoices could cost you thousands! You may be liable for penalties, interest and even prosecution!
Are you sure that the tax invoices you receive are issued properly? Are all the SARS requirements on the tax invoice? Have you ever thought about it?
What if something is omitted from a tax invoice on which you've already claimed input tax?
Anyone who has ever experienced a SARS Vat audit will tell you the first thing the auditors check are your tax invoices!
To find out what errors NEVER to make on your tax invoices, and what the SARS auditor will look for at audit time, book your seat at the VAT Masterclass here…
So what's wrong with the Oriental Plaza receipt?
Apart from the fact that the words tax invoice, the address and VAT number (possibly) isn't on it, it's only partially issued in one of the 11 official languages of this country. And there's no indication of the currency type – i.e. Rand, Zimbabwean Dollar or Pound!
Did you know that it's a pre-requisite for the whole tax invoice to be issued in one of our official languages, and that it must be in Rand?
If you'd claimed the input tax on this slip, do you think the SARS auditor would allow it?
And on the subject of the wording, if you held a document called 'VAT invoice' and claimed input tax as indicted on it, would the document be valid?
As a VAT consultant and previous VAT law administrator at SARS, I see so many vendors getting their invoicing wrong. And you'd be surprised to learn that even one of SA's biggest retailers has been guilty of this very same error!
So at this year's VAT Masterclass
, we'll not only be dealing with these 2 issues on your tax invoices. We'll also let you in on red flags SARS looks out for in your supporting documentation to try and deny your input tax claim – so you can avoid this situation. And we'll show you missed input tax deductions you can claim, but didn't know you could.
We'll be in the major cities in May – Johannesburg, Durban and Cape Town, so book your seat today
and make sure you don't miss out!
Book for 3 or more delegates and save 10% on your tickets. Email firstname.lastname@example.org
to get your discount.
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