- Ex - VAT auditor spills the beans on how you might trigger your own unnecessary VAT audit
- 'Dear Vongai, we've been audited by SARS for four tax periods in a row. What is the problem?'
You could unnecessarily trigger your own VAT audit
Avoid this one red flag SARS looks out for
Have a look at this letter I received from Lucia, one of our Practical VAT Handbook Subscribers.
'We've been audited by SARS for four tax periods in a row. That's every tax... ››› more
- [05 June 2017]
- Here's how to claim input tax back on your staff's flu jabs!
- It's not just your health and safety officer who needs to pay attention when there's a medical expense or emergency in the office.
Winter is flu season and Star Consulting didn't want its 500 staff members to spend time off sick. So it hired a mobile clinic to come to the office and give its staff flu injections.
The clinic charged R50 per injection, so the total amount... ››› more
- [02 May 2017]
- Ask SARS to suspend your payment in two simple steps
- When it comes to a VAT dispute with SARS, do you know when you should pay, or if you should pay the disputed taxes at all?
You need to get this right, or you'll incur unnecessary penalties.
You can ask SARS to suspend your payment, with a payment suspension request. Let's look at an example. Example
Furniture Friend gets a VAT assessment for R84 000, including penalties and interest f... ››› more
- [01 May 2017]
- Facing a VAT audit? Make sure you have these nine financial records at hand...
- Nothing causes more panic in a business owner than receiving a notice from SARS that your business is facing a VAT audit. But most of the panic comes from uncertainty of what to expect.
You may not even have done anything wrong, so don't worry.
Your VAT audit may have been triggered simply because your accountant entered a zero in the wrong spot on your VAT return. And having these nine docu... ››› more
- [28 April 2017]
- The SARS 10 commandments for eliminating your tax debt
- If you've ever owed SARS money, you know that SARS goes on a drive to collect all outstanding taxes in February and March each year.
And you're probably thinking SARS won't bother you again until 2016.
Well... things have changed.
SARS' image took a huge knock earlier this year when some of its senior staff acted beyond their authority to gather information on suspected tax evaders. So S... ››› more
- [23 March 2017]
- SARS will interview you when you apply for Vat registration. Take note of the six pieces of information it wants to know or it will reject your application
- When you apply for VAT registration, SARS will do an interview to find out key information about your business.
It's important that you're aware of what SARS wants to know during this interview so you can get your VAT affairs in order and give them what they want.
Because here's the thing, if during the interview SARS finds any signs of non-compliance, they'll reject your application.
... ››› more
- [15 February 2017]
- How to calculate the fringe benefits of VAT on company cars
- One of the most common fringe benefits encountered on modern payrolls is the right to use a company car
Where an employee has the right to use a company car, you must calculate the VAT on the fringe benefit as follows:
Where the vehicle is a motor car (not a bus or kombi) and the input tax was specifically denied, the calculation is as follows:
0.3% x the determined va... ››› more
- [15 February 2017]
- Five ways to get your business travel costs back
- As you know, travel is an integral part of business. But the costs associated with travel are high. There's the cost of flights, car rental, accommodation and meals. This is sometimes just the start of the costs.
But what if I told you there was a way for you to get some of these costs back?
Keep reading to find out what the five common business travel expenses are and their VAT consequences... ››› more
- [09 February 2017]
- Use this legal loophole to claim VAT on your clients' gifts
- You probably buy your clients gifts during the year. But just before you submit your VAT return and miss out on a potential VAT saving, you need to read this first!
You're probably thinking... SARS sees gifts as entertainment and disallows input tax claims from the onset, right? Well... not quite...
During the FSPBusiness VAT Masterclass, I found a secret loophole that's totally legal. And... ››› more
- [09 February 2017]
- Four rules your need to know about Vat refunds
- Vat refunds are great as they boost your company's cash flow. In this tough economy every little bit of cash is welcome.
But, getting a Vat refund isn't that simple.
You have to play by the rules if you want to get your Vat refund on time and without any problems.
Here are the four rules we believe every Vat vendor needs to know about Vat refunds.
*********** Product endorsement ***... ››› more
- [01 February 2017]
- How one fatal mistake by SARS saved AB Pty Ltd R32 million
- If you under-declare your income, SARS will hit you with a laundry list of penalties, fines and interest. AB Pty Ltd got first-hand experience of this when SARS raised R69 million in penalties and interest!
But, there was something SARS didn't do which made part of the penalty fall away.
Let's look at this case and how AB Pty Ltd got away with some of the penalties SARS imposed. ************... ››› more
- [31 January 2017]
- Make sure your credit notes have these six items or you'll face the following consequences
- It's simple. If you cancel a tax invoice, you have to issue a credit note.
You also have to claim back the VAT.
If you don't you will probably underpay your VAT and miss out on input tax deductions.
Let's have a look at what must legally be on your credit notes and the consequences you will face if you don't get it right.
But, before I cover that, let's look at why you must issue 'lega... ››› more
- [27 January 2017]