Five steps to complete your VAT201 return with ease, every time
It's almost time to file your VAT return form again. And it's important to approach your VAT return with care every time you complete it.
You see, your VAT return in a legal document and has steep consequences for mistakes or misrepresentations you make. If SARS catches you out, they'll think you're trying to evade tax, and could give you a criminal record.
But don't get bogged down with this task.
Follow our five simple steps to complete your VAT return seamlessly every time.
Make sure your VAT return is 100% correct!
Putting a zero in the wrong place on the new VAT Return could trigger your next SARS audit!
Find out how to make sure this never happens to you by getting your VAT return right every single time!
Use these five steps to complete your VAT return today
Step #1: Log in to SARS eFiling. This is much faster than going to SARS and waiting all day long in a queue!
Request your VAT201return for the tax period you're filing for. The VAT201 will open in three pages.
Step #2: Page 1 gives you the name, VAT number and tax period for your business. Here you need to complete the contact details of the person capturing or 'filling in' the return.
SARS will use this information to update its details of the contact person is. And they will know who to get hold of, if they have any queries.
Read on for the next three steps…
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I'll show you how here!
Your chances of being audited by SARS just increased…
A small administrative mistake is all it takes for SARS to schedule an audit for your business.
Putting a simple zero in the wrong place on the new VAT return could cause a long and tedious audit process that could cost your business thousands.
Make sure this never happens to you by filling in the new VAT return 100% correctly every, single time.
Three more steps to complete your VAT return…
Step #3: Check the following four items or you could be asking for a SARS audit:
Then ensure the 'X' is marked in the correct block.
The tax period is correct;
If you're an importer, check your importers code is on the return;
Check if you're eligible to claim for diesel, and
If you can claim for diesel, check the type of industry you're involved in.
Step #4: Move onto page 2 of the return. Here you need to account for output tax. Also marked as'A. Calculation of Output Tax'.
Make sure you double check your calculations!
Step #5: Page 3 of the return: Also marked as 'B. Calculation of Input Tax' This is where you claim your input tax.
Remember: Read the description of each block and make sure you fill in the correct ones, or you could trigger an unnecessary audit from SARS! For example, don't put zero rates (meant for block 2) in at exemptions (block 3).
But there's so much to tell you about the different blocks you need to use. The Practical VAT Handbook shows you everything you need to know about filling in your VAT201 correctly. Claim your copy here.
Now that you know how to complete your VAT return, use these 10 tips to get your VAT refund quickly from SARS.
P.S. For a checklist on 19 other little-known items you can claim an input tax deduction on, get your copy of the Practical VAT Handbook.