Well, from 8 January 2016, SARS has relaxed its regulations on the name of a valid tax invoice. And no, you won't lose out on your input tax deductions. They'll let you claim, if you use one of their approved new names.
Read on to find out about the new names SARS will accept for a valid invoice.
******** VAT Legislation has changed ********
Make sure you register for VAT before SARS catches you out
If you're liable to register for VAT and don't – you're guilty of a criminal offence. You may even go to prison. And the penalties and interest you would have to pay on your late VAT returns are harsh, so avoid this!
SARS will see from your Income Tax Return what your turnover is, and will ask you why you're not VAT registered.
I don't want this to happen to you, so let's have a look at the change to VAT legislation. And find out if you should register for VAT.
Forget what you knew about how to name your tax invoice
Previously, if your tax invoice was titled:
VAT Invoice; or
Invoice, SARS would deny your input tax claim.
They wouldn't accept any invoice if it didn't have the words tax invoice
written in a prominent place.
Here's a sample of what SARS used to
But things have changed now... read on below.
******** Get your Vat refund from SARS within 21 days
Do your Vat refund in ten simple steps
Calculate your Vat, submit your Vat return form and get your refund back from SARS without any delays when you follow this ten-step action plan.
Get your hands on this ten step action plan now to get your Vat refund when its due.
The Tax Invoice now has two new names
If you hold a document called a Tax Invoice
, VAT Invoice
or even just Invoice
, you have a valid document in which to claim your input tax (Section 20 of the VAT Act)
So next time your supplier sends you an Invoice
, you don't need to return it. As long as it meets all requirements of a valid tax invoice...
You now know the first requirement. Get the other 8 requirements and your sample copy of the new valid tax invoice in your Practical VAT Loose Leaf.
Last year SARS made 94 changes to the VAT Act. And some of them affect the way you claim your input tax. Join Dee Bezeuidenhout for an intensive 2-day VAT training programme, and gain an in depth understanding on the latest VAT rules and regulations. Simply follow this link