HomeHome SearchSearch MenuMenu Our productsOur products

Claim Vat refunds correctly or prepare to face these penalties...

by , 14 August 2014
When your input tax exceeds your output tax, you're due a refund! This means you must submit your Vat return to SARS so it can pay you back.

What usually happens is most vendors tend to go overboard when it comes to Vat refunds. They just want to get every little penny from SARS. As a result they up claiming refunds incorrectly.

And that's when SARS pounces to slap you with the following penalties for trying to squeeze more money from its purse...

 

*********** Recommended Product ************
 

Confidential: 13 Vat secrets SARS doesn't want us to publish

These secrets will give you insider information on how to red-flag potential Vat risk areas, before the SARS team does.

Click here to find out what they are
 

*************************************************
 

These are the penalties you could face for claiming refunds incorrectly


SARS can hit you with penalties that include a fine or even imprisonment for up to two years if you claim Vat incorrectly or five years for evasion! SARS can also levy interest at the prescribed rate.

So never:

  • Claim non-existent amounts of input tax;
  • Claim input tax that you can't verify; or
  • Make a claim that you don't have complete documentation for. (If you can't prove it, or if your records are incomplete or invalid, don't even attempt the claim.)


SARS sees this as fraud and it'll penalise you. So instead of getting the refund you wanted so badly, you'll have penalties coming your way.

To be on the safe side, check out this article. It contains four rules you must follow when it comes to Vat refunds.

We also recommend you check out the Practical Vat Loose Leaf Service. It'll show you the two steps to take to claim your Vat refund, give you tips that'll help you get your Vat refund quicker and so much more.

Now that you know the penalties you'll face for claiming Vat refunds incorrectly, make sure you comply. As you can see, it's just not worth it.




Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>