HomeHome SearchSearch MenuMenu Our productsOur products

Facing a Vat audit? Make sure you have these ten financial records at hand...

by , 26 March 2013
Nothing causes more panic in a business owner than receiving notice from SARS that your business faces a Vat audit. But most of the panic comes from uncertainty of what to expect. You may not even have done anything wrong, so don't worry. Your Vat audit may have been triggered simply because your accountant entered a zero in the wrong spot on your Vat return. In the mean time, here are ten financial records SARS will want to inspect during a Vat audit - make sure they're easy to access during your Vat audit.

Is your business facing a Vat audit? 
 
Don't worry, they're becoming increasingly common. 
 
Especially as putting a simple zero in the wrong place on your Vat return is now all it takes to trigger the Vat audit process that could cost your business thousands, says FSP Business.
 
That's why Vat audits and Vat issues are getting businesses into hot water around the world.
 
In fact, Trinidad and Tobago's National Agricultural Marketing and Development Corporation (Namdevco) has just come under fire after an internal procurement audit unearthed multiple cases of contracts being awarded to companies without Vat registration, the Trinidad Express reports. 
 
Locally, your best bet to surviving a Vat audit it is to understand what SARS checks for in a Vat audit, says InspiringWomen
 
Ten items SARS will investigate if your business faces a Vat audit!
 
Even if it's a Vat audit you're facing, remember that SARS will want to check the overall financial records of your business.
 
But don't panic – there are ten items that SARS will want to look into if your business has been selected for a Vat audit, says InspiringWomen:
 
  1. Your Vat return totals will be checked against your general ledger and summary
  2. Your Vat control account will be reviewed to test your accounting system for errors
  3. SARS'll check if Vat interest and penalties were added back into your records
  4. Your tax invoices will be selected and tested – make sure they clearly state 'tax invoice' and not 'Vat invoice!
  5. Your debtors will be checked
  6. SARS'll investigate how you've classified your trade
  7. A record of any previous audits will be examined
  8. Your type of taxable supplies will be checked
  9. SARS'll also go through your history of Vat refunds for any mistakes that've been carried over
  10. Lastly, SARS will look at the value of your assets and liabilities when you registered for Vat as well as your capital assets acquired to ensure you're making the correct capital gains tax claims.
 
Go through these financial records today to check for any discrepancies before your Vat audit!
 
If you've gone through all these financial records yourself and found no discrepancies, there's nothing to worry about.
 
Simply having these financial records at hand will cut the time it takes for your Vat audit in half, says FSP Business.

Ensure you complete your Vat return correctly - by having all your financial records on hand - , get your hands on the VAT201 e-report. In it you'll find:
  • How the five new changes to the Vat return affect your declarations
  • How to use the 'refund dashboard' to get your refund quicker
  • Your 100% correct and complete Vat return in seven simple steps
  • Exactly what you need to do when you receive an audit notification from SARS
  • The six new payment methods SARS has just introduced!
  • The five circumstances when you can make an adjustment
  • And so much more!

Get your VAT201e-report here!


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 >>>