Avoid these seven mistakes on your input tax claim
Want your input tax claims process to go smoothly? Then avoid these seven mistakes...
Is SARS making your life hell by slapping you with penalties or delaying your input tax claims? Are you tired of not knowing what mistakes you're making on your input tax claims over and over again?
Don't stress. You can finally put an end to your input tax claims crisis once and for all. Here are seven mistakes you should avoid to ensure your claim process goes smoothly…
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Seven mistakes to avoid on your input tax claims
You can avoid getting into trouble with SARS when dealing with your input tax claims. Here are the mistakes you must avoid..
How to get your Vat documentation right – first time, every time
Don't make a claim without a corresponding valid tax invoice to back up the claim
Don't claim input tax on goods or services acquired for entertainment
Don't incorrectly claim an input tax credit for the purchase or the rental of a motor vehicle – these claims are disallowed;
Don't claim input tax on the cash value of goods bought under an installment credit;
Don't claim input tax on subscriptions to social, sporting or recreational clubs
Don't claim input tax on second hand goods that don't contain proper second hand good registers; and
Don't make claims if you don't make your adjustments for debit and credit notes or prompt settlement discounts that suppliers grant.
Did you know...that in the vast majority of cases SARS has issues NOT with your interpretation of the Act, or with fancy avoidance schemes, or even with complicated transactions, but with your documentation?
Learn more here
Avoid these mistakes and you will never have to worry about struggling with input tax claims ever again. If you have questions on input tax, join our tax and accounting club
and get expert advice.
Until next time,
Managing Editor, Vat Practical Loose Leaf
So now you know what to avoid on your input tax claims, I'm sure your claim process will go much smoother. We have a full breakdown on input tax claims in the Practical Vat Loose Leaf
. Get your copy today.