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Four Vat refund rules that will help you claim money back from SARS

by , 14 October 2014
Vat refunds are a great way to optimise your company's cash flow by getting money back from SARS.

But SARS keeps a close eye on these Vat refunds to ensure you don't take advantage of the system. If you break the rules when it comes to them, SARS will reject your claim and could even audit your company.

That's why you need follow these four ground rules when it comes to Vat refunds...

 

Always follow these four Vat refund rules 

 
Rule 1: If your input tax exceeds your output tax, you're entitled to a refund. You can't claim a Vat refund otherwise. 
 
Rule 2: If your output tax exceeds your input tax, the difference shows the Vat liability you'll have to pay over to SARS. If you try claim a refund when you actually owe SARS money, it could trigger a Vat audit on your company.
 
Rule 3: You can't off-set a refund for one tax period against Vat payable for another tax period but SARS can!
 
*********** Reader's choice  ***************
 
Getting your VAT refund from SARS just got harder…
 
A small administrative mistake is all it takes for SARS to have the right to withhold your refund.
 
Put a simple zero in the wrong place on the new VAT return could and you can forget about getting even a cent of your money back.
 
Make sure this never happens to you by filling in the new VAT return 100% correctly every, single time. 
 
 
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Rule 4: You must have documentary proof for every item you claim input tax for. If you can't prove it, or if your records are incomplete or invalid, don't even attempt the claim! 
 
SARS conducts periodic audits to verify claims and you'll pay a fixed penalty if you try to evade or postpone paying tax.
 
So always get a valid tax invoice from your supplies with their Vat number, the purchase amount, Vat rate and date on it.
 
If you follow these four basic Vat rules when it comes to claiming your Vat refund you can do it without triggering a Vat audit and costly penalties.
 
PS. You can guarantee you get your Vat refund back within 21 days. Check out the Vat Refund Accelerator to find out how. 
 

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