HomeHome SearchSearch MenuMenu Our productsOur products

Are you waiting for SARS to issue your VAT registration number, but not sure how to claim back VAT in the meantime? Here's how

by , 03 May 2016
Dear reader,

So, you've registered for VAT because your company is now making more than R1 million in turnover.

But, SARS can make you wait up to six months to get your VAT number.

The good news is you don't have to sit around waiting for it to claim back your VAT.
Here's how to claim your VAT back in two simple steps…
****** Your finance team can't afford to miss this! ******
In 2016 the government expects to collect R284 billion from VAT, up by 10% compared to 2015. 

Considering VAT is the second source of income to the consolidated budget, your 2016 VAT returns are now SARS' favourite target for audits!

Don't let this happen to you.
Attend the VAT Masterclass 2016 and get detailed info on the VAT201 form and how to complete it correctly so SARS doesn't turn its attention on you.
Book your seat today
How to claim your VAT back in two simple steps…
Step #1: Keep all the tax invoices for business expenses you've paid VAT on. You must keep them for the period you've been trading. You can claim back as far as five years back.
Step #2: Once you get your VAT number from SARS, you'll have to submit a VAT return. Fill in the total amount of VAT you're claiming in block 15 on the VAT return. This is all the VAT (as far back as you've been trading).
But, remember, you're not allowed to charge VAT if you don't have a VAT number yet. Here's how to get around it…
******Get your VAT number the same day! ******
Don't take up to six months to register for VAT! Here's how to do it the same day
More Than 90% of applications for VAT registrations are rejected by SARS!

But yours doesn't have to be one of them.

I have a solution to ensure you walk into a SARS office 100% prepared for your VAT registration.
Here's how you can register for VAT and get it the same day...
How to charge VAT and recover it from your clients while waiting for your VAT number
Even though you're trading, you can't charge your clients VAT. But, once you receive your VAT number, you can go back and levy the VAT on your clients (Section 67, VAT Act). Unless you have an agreement that specifically disallows this.
Let's look at a practical example of how to do this…
Practical example of how to recover VAT from your clients
Asif and Jacques start an accounting practice. They start trading on 1 May 2014. But, at the end of May, when they need to issue invoices, they still didn't have their VAT number. So they don't charge their clients VAT.
They only receive their VAT number on 1 June 2014. But SARS holds them liable for VAT from 1 May 2014. You must charge VAT the minute you're liable to register for VAT.
Asif and Jacques have to go back to the clients they invoiced in May and charge the 14% VAT as an additional charge. So they issue credit notes for the May invoices and re-issue tax invoices that include VAT.
Their clients can claim the VAT back as input tax.
Apply these steps today, claim back your VAT and put more money in your business bank account.
P.S. One of the biggest problems with VAT registrations is not having the right supporting documents and not complying with SARS' requirements. To make sure you have the right documents, get your hands on the A-Z of VAT Registrations and speed up your registration process.

Vote article

Are you waiting for SARS to issue your VAT registration number, but not sure how to claim back VAT in the meantime? Here's how
Note: 5 of 1 vote

Related articles

Related articles

Related Products