Don't claim input tax without a valid tax invoice!
Ex-SARS auditor reveals:
Five red-flags SARS looks for when doing a Vat audit
Statistics show, your company will be audited at least once every five years. And that means SARS is looking to reverse your input tax
Are you ready for your next SARS Vat
Click here to find out how to survive your SARS Vat
audit and keep your input tax
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
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…
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…