VAT refunds form an important part of your business because they ease your cash flow.
And if you're tax-smart, you'll make use of every allowable input tax deduction you're entitled to in order to maximise your refunds, claiming back every legal cent you can.
But some VAT refunds can take longer than others to come through, depending on what you do to get them. And you may not have the time, or the patience, to wait longer than you need to.
So to help you claim your VAT refunds as quickly and as easily as possible, here are 5 little tricks you can use...
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.
Make sure SARS has your correct banking details.
Because if they don't, your VAT refund will bounce! And it'll stay with SARS until you can provide proof of your correct banking details.
What makes this so bad is that it can up to one year to get sorted out! So make sure you provide your correct banking details! Check it again, just to make sure.
Make sure you've submitted all of your VAT returns, because SARS won't pay any refunds if you have any outstanding returns.
Instead of waiting until the 25th
of the month to file your VAT refund claim, do it as soon as possible after the end of your tax period.
Use eFiling. Because by using it, your return is captured straight away.
If you submit manual returns, SARS can take up to 14 days to capture it! And I'm pretty sure you wouldn't want this delay, especially when knowing you could have avoided it!
Make sure your returns for all other taxes are up-to-date.
This includes PAYE, SDL, Customs, UIF etc.
If any of these returns are outstanding, you won't receive your VAT refund.
*Those were 5 little tricks you can use to get your VAT refunds quickly and easily.
But don't stop there! Because there are other little tricks you can use to ensure your VAT refunds come through as soon as possible.
To find out what they are, page over to Chapter R 02
in your Practical VAT Loose Leaf Service
If you don't already have it, simply click here
to order your copy today.
All it takes is one click to get on top of all your VAT issues. It's never been easier!