VAT tips are something which employers are actively on the hunt for.
Finding that next little 'nugget' of knowledge can really make your VAT life a whole lot easier.
Well, you're in luck today!
As pointed out on Cents Accountability, here are 4 very interesting, and useful, VAT tips you should know...
VAT tip#1: The 'Fast and the Furious' mistake
If you claim input tax, your SARS VAT audit is impending
And when the SARS auditor comes knocking or sends a query, he'll check if:
· Your books and records comply with the requirements of Section 55 of the VAT Act;
· You didn't claim on exempt supplies;
· Any of your claims were for non-taxable supplies;
· You apportioned inputs correctly and at the right tax rate (Sections 16, 17 and 20
of the VAT Act);
· And more!
But the truth is, even if you're entitled to your claim, but don't have the valid documentation, he'll still reverse your deduction!
Here's everything you need to secure every input tax claim you submit.
As SARS has pointed out, many vendors fail to pay over VAT on company car fringe benefits.
If SARS audits you, the chances are they'll look up on that first. So make sure that you're paying output tax on company cars!
VAT tip#2: ''Cause I'm leaving on a jet plane'
That's right, domestic air tickets are subject to VAT. And so if you travel within the country on business, you can claim back VAT on the ticket.
International air tickets, road and rail transport are not subject to VAT, simply because you're not charged any VAT on them to begin with.
VAT tip#3: 'Roses are red, violets are blue'
If you, for example, buy a bouquet of flowers to place in your business's reception area, or if you send 'get-well' flowers to a hospitalised employee, it's worth noting that these are office expenses you can claim VAT on.
VAT tip#4: 'Breaking the bank'
To quote one of our very own experts on this matter, 'You can claim the VAT back on all the bank charges which relate to the business or the enterprise!'
*So those were 4 useful VAT tips for you to use to your advantage in future.
But if you're still hungry for more great tips, advice and information on all VAT issues, open up your Practical VAT Loose Leaf Service
handbook and get cracking!
If you don't already have this fantastic VAT resource, we've got you covered.
Simply click here
to order your copy today.