Don't claim input tax without a valid tax invoice!
Unlike the vendor in the above case, you must do the following:
1. Make sure you have valid tax invoices for all your purchases; and
2. Keep your tax invoices safe and on file for at least five years.
If you can't produce your tax invoices, SARS will think you're trying to claim money fraudulently and will raise an assessment against you. It will slap you with penalties and fines!
It's your responsibility to get valid tax invoices from your suppliers reflecting your correct Vat registration number. Or you'll forfeit your refund.
And, if you don't have the tax invoice, don't claim. It will end up costing you more!
Read on to find out the eight requirements of a valid tax invoice and never miss out on another input tax deduction again…
SARS issues TWO MILLION Vat review letters a year
Eight requirements for a valid tax invoice
That's the letter that pops up immediately after your submit your Vat returns. The same letter that has seen people around the country wake up to thinned out bank balances.
Now get this: There are only 700 000 vendors registered with SARS…
do the math.
Every vendor should receive this letter at least
once a year.
to protect your bank account before you do…
Any tax invoice you receive or send must contain:
1. The words 'Tax Invoice'; 'Credit Note' or 'Debit Note', depending on the document required;
2. The name, address and Vat number of the supplier (the Vat number will be a ten digit number, starting with '4');
3. The name, address and Vat number of the purchaser, if the supply is for more than R5 000. If you sell to someone that isn't a vendor, leave it open;
4. A serial number of the invoice;
5. The date the tax invoice was issued;
6. A description of the goods supplied, but also the mass or quantity of the goods bought when the tax invoice is for more than R5 000;
7. The amount paid for the goods bought; and
8. The price of the goods, the amount of Vat and the total, or one amount including the Vat, but then a statement that Vat is included in the price and the rate at which it was charged (i.e. either 0% if zero-rated, or 14% if standard-rated must appear on the tax invoice). This, they must state 'Computer-generated copy tax invoice'. All further copies must also state this.
There you have it. Now you don't have to fall victim to SARS like this Vat vendor! For everything you need to know about meeting all your Vat obligations, simply follow this link…
If you have a tax invoice and aren't sure it will pass SARS' stringent scrutiny, bring it along to the Vat Masterclass, and let Dee tell you, before you end up paying R4.5 million too! Click here to book your seat…