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Ensure your VAT electronic records are SARS compliant with this checklist…
QUESTION#1: Are you keeping your electronic records for the required time?
According to section 29 of the Tax Administration Act (TAA), you must keep electronic records for 5 years.
QUESTION#2: Are you records in an acceptable electronic format?
You must be able to:
· Provide SARS with an electronic copy of the records in a format they can readily access;
· Send the records to SARS in an electronic form that is readily accessible; or
· Provide SARS with a paper copy of the records and keep the records in an electronic form that is readily accessible for them.
QUESTION#3: Are you keeping your records in the right place?
You must keep your electronic records in a place that is physically located in South Africa.
However, a senior SARS official can give permission for you to keep your electronic records outside of South Africa if the he's happy that:
· You can access the electronic records for the duration of the period within which you are required to keep them;
· The place where the electronic records are kept will not affect access to them;
· There is an international tax
agreement for mutual assistance between South Africa and the country in which you wish to keep the electronic records;
· The form of the records still meets the requirements despite the physical location being outside of South Africa; and
· You will be able to provide SARS with an acceptable electronic form within a reasonable time.
*If you can answer 'YES' to all of those questions, then your VAT electronic records are on the right track to being SARS compliant.
To learn more, page over to Chapter R 04: Record Keeping,
in your Practical VAT Loose Leaf
service handbook, or click here
to order your copy today if you don't already have it.