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Avoid a company Vat audit with these three tips

by , 24 December 2014
SARS is very strict about Vat rules. It expects all Vat vendors to comply with them or face serious penalties.

If it even thinks you haven't complied with Vat laws, it will audit your company.

You don't have to let this happen though. If you manage your company's Vat correctly, you can be sure you follow the rules and avoid a Vat audit.

Use these three tips to ensure SARS never comes after your business...

 

Prevent SARS from auditing your company with these three easy tips

 
Tip #1: Ensure the turnover figure on your financial statements matches the figure on your return
 
One of the most common mistakes vendors make is to have conflicting turnover figures in their annual financial statements and their Vat returns. 
 
If there are good reasons for the difference, make sure you're able to answer a query from SARS in this regard.
 
*********** Product endorsement  ************
 
Do you know how to:
 
•         Avoid a Vat Audit?
•         Claim every input tax credit?
•         Get your refund from SARS quicker?
 
You should. And you can. By reading this letter, it will tell you how to avoid costly Vat mistakes, save you money, time and be your CEOs favourite person when you save the company R1 000s of rands in Vat refunds this year.
 
*****************************************
 
Tip #2: Reflect all figures for all your sales, even if they're zero-rated
 
Vendors often forget to show the figures for zero-rated sales (basic foodstuffs, exports, etc). This mistake could result in your input tax being too high in relation to your sales. This is a sure way to attract an audit!
 
Tip #3: Don't claim input tax on exempt supplies 
 
If you make exempt supplies, such as letting homes or supplying staff housing, make sure you reflect the supplies as exempt in your Vat return. Be careful not to claim input tax relating to them!
 
SARS regards vendors making exempt supplies as a risk. If you don't show zero-rated and exempt turnover, it will attract an audit.
 
Use these three tips and SARS won't have any reason to do a Vat audit on your company.
 
For 11 more tips on how to avoid a Vat audit, check out the Practical Vat Loose Leaf Service.
 

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