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How to claim input tax in two easy steps!

by , 22 May 2014
Claiming input tax should be an easy task. We all know you claim the input tax for your relevant tax period when you complete your Vat return.

But you may be surprised to know we get questions almost every day about SARS rejecting claims because our subscribers filled in their Vat201 (Vat returns form) incorrectly.

Here's how to claim input tax correctly in two easy steps - so you never have your input tax claims rejected again.

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Input tax 101 e-Report
 
Tips, tools and practical advice to claim every input tax credit available to you and get the maximum from the Vat system.
 
 
 
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Two input tax must haves to get the thumbs up from SARS on your input tax claims

Get your tax invoices in order
 
The first thing you need to do, is make sure you have a valid tax invoice to prove your input tax claim to SARS. If you don't have the tax invoice, or if the invoice isn't valid, you can't claim the credit. 

Every valid tax invoice includes  these 12 items:
 
  1. The legal name and address of the supplier;
  2. The words 'tax invoice' (and NOT 'Vat Invoice') must be clearly visible;
  3. The invoice number must be on the invoice;
  4. A serial number of the invoice;
  5. The Vat number of the supplier (the Vat number will be a 10 digit number starting with 4);
  6. The date the invoice is issued;
  7. The trading name and address of the recipient;
  8. The Vat number of the recipient;
  9. An accurate description of the good or services supplied;
  10. The quantity or volume supplied;
  11. The total amount charged for the goods or services; and
  12. The rate of Vat that's being charged (either 0% if zero-rated, or 14% if standard-rated).
Read on for the second thing you need to do.

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Errors in Vat invoices could cost you thousands!
 
Are there any inaccuracies in your Vat invoices? You may be charged a very high penalty!
 
The truth is brutal! Even if it wasn't you who made the mistake, it may be you who will bear the consequences. If SARS has found inaccuracies, you will be assessed, held liable to penalties and interest and possibly even additional tax! You may even be prosecuted!

Here's how to make sure your Vat invoices are 100% SARS compliant 

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Claim every input tax credit you can, and don't make costly mistakes
 
The second element to your input tax strategy is to know what you can claim.
 
The Practical Vat Loose Leaf Service covers all the items you can claim input tax on. So if you don't have a copy yet, get yours today. 
 
Until next time
 
Natalie Cousens
Managing Editor: The Practical Vat Loose Leaf Service



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