Are you sure your Vat return will always be accepted by SARS?
As a Vat vendor, you're used to submitting returns to SARS regularly. But there are still so many vendors making small errors on Vat returns submitted to SARS. There are a lot of questions about the first step of filling in the form correctly, before you can even look at the answers to more complicated Vat return questions. Simple questions like...
Are you submitting yours on time?
Have you used correction fluid on your form?
Are there errors on your form?
Make any errors on any of these questions, and your return will be rejected.
Every month we receive questions from our subscribers about Vat returns. This month we received one from Glynis, who asked about her company's Vat return forms.
Let's have a look at what our Vat expert had to say about the question from our Vat subscriber…
How would you deal with declaring Vat on a clearing agents invoice?
'I have a client importing goods and there's no Vat implication on the goods purchased, except for the Vat on the clearing agents invoice. Does this Vat have to be shown separately on the Vat201 return? Where will the purchases (included in our cost of sales) be shown on the Vat201 return?'
+++ Your chances of being audited by SARS just increased…+++
A small administrative mistake is all it takes for SARS to schedule an audit for your business.
Putting a simple zero in the wrong place on the new VAT return could cause a long and tedious audit process that could cost your business thousands.
Make sure this never happens to you by filling in the new VAT return 100% correctly every, single time.
Find out how here.
Our expert, Gerhard Badenhorst, who manages the Vat desk and is a highly recognised expert in his field, had this to say:
Include the Vat clearance amount in Block 15 of the Vat return.
The import Vat paid on the importation of the goods should be reflected in Block 15A if the goods comprise trading stock or consumable goods which I assume the goods are because they are reflected as cost of sales. However, if the goods imported are capital goods, then the import Vat must be reflected in Block 14A.
The Vat on local purchases of cost of sale goods must be reflected in Block 15 of the Vat return.
Want to make sure your Vat returns are always accepted by SARS? Get all the Vat secrets with your subscription to the Practical Vat Loose Leaf service
Until next time
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Note: 5 of 1 vote