The rules issued for BGR21 fall under the terms of Sections
20(4), (5), (5A), 21(3) and (8) of the VAT Act.
And so if you don't issue tax invoices, credit or debit notes correctly, then you aren't complying with legislation and therefore could be penalised for it.
Read on to see the other 2 red flags…
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The Binding General Rules gives VAT vendors two options for how exactly the addresses must be displayed on tax invoices, credit and debit notes.
So take note of them.
Make sure that you show the physical as well as the postal address of the supplier and the recipient or both.
If you don't do this, then you'll be issuing invalid documents with the recipient receiving them and not being able to claim input tax
or do debit or credit deductions (with regard to the debit and credit notes), which will lead to her banging on your door with a mouthful to say to you.
*So, those were 3 red flags to watch out for in order to invoice correctly for BGR21.
Remember that SARS deliberately keeps a very close eye on the 3 above-mentioned red flags, so pay careful attention when invoicing correctly for BGR21.
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