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Eight records you must keep when dealing with stock and transactions

by , 01 August 2013
Record-keeping is the most important aspect of your Vat management strategy as your records are the proof to substantiate your claims and returns to SARS. This means, if your company buys and resells stock on a daily basis, SARS will need to access additional records. Keep these eight records to ensure you're not missing any critical records from your record-keeping system.

Does your company buy and resell stock on a daily basis? If so, 'ensure you keep these eight records safely to avoid Vat penalties and interest from SARS,' says the Practical Vat Handbook.

Keep these eight records if your company buys and resells stock

#1: Any records that document all the goods or services you supplied, received and imported for the tax period;

#2: Tax invoices, receipts and cash register tapes that show your end-of-day Z-readings;

#3: Stock sheets;

#4: Control lists; and

#5: For imports, you'll need the following:

  • Bill of entry
  • Proof Vat has been paid to Customs (receipt from Customs). But if the above documents are held by a clearing agent, the agent must let you have the following within 21 days:
  • A full and proper description of the goods;
  • The quantity of the goods; and
  • The amounts involved and the Vat.

#6: If agents act on your company's behalf, get the following from them within 21 days of the transaction:

  • A full and proper description of the goods;
  • The quantity of the goods; and
  • The amounts involved and Vat.

#7: For property transactions where you want to claim Vat, you'll need to keep:

  • An agreement of the purchase and/or sale;
  • A TD5 form;
  • Proof of payment; and
  • A copy from the deeds office to show the property's been registered in your name.

#8: If you're claiming notional input tax on second-hand goods, remember to keep a Vat264 declaration form.

Remember, you must keep these records for a period of five years. Doing this will ensure you avoid SARS penalties.

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