Save your business from penalties by being an instant audit expert!
With penalties as high as 200%, you can't afford to stay in the dark about the auditing process. You need to know your rights, your responsibilities and obligations, and you need to know them before it's too late…
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Maintain a proper audit trail in order to prove the claims you've made on your VAT returns.
Always keep the necessary equipment to produce a paper copy of any scanned documents at your premises.
Any paper copies which have been scanned in and printed out must be clearly marked as 'Copy'.
The copies should be of a good quality and easy to understand.
You must create and maintain a functional index of all the scanned documents.
In other words, you should index your documents in a way that can be used effectively and efficiently.
For example, this could in numerical, alphabetical or even supplier format.
The database MUSTN'T
allow for any alteration or manipulation to the scanned documents.
You must store it in a PDF format or encrypt it if you're keeping it online (such as on a cloud drive).
It's difficult to see if a document wasn't tampered with before it was scanned in. But SARS would do this by checking if the supplier's invoice matches yours.
DON'T simply scan everything onto your computer and then destroy the original hard copies.
You still have to keep your ledgers, cash books, journals and paid cheques in paper-based formats.
At the end of the day, rules are rules to SARS. And if you make a mistake, it's simply considered a breach of them, regardless of whether it was based deliberate or negligent action.
So don't take any chances, and instead follow these rules 'to a T'.
*To learn more details on keeping electronic records for VAT purposes, go to chapter R 04
in your Practical VAT Loose Leaf Service,
otherwise click here
to get your hands on this fantastic resource today.