If you don't know what the Vat Act says about the format of tax invoices, your business could lose out on thousands
If you claim your input tax back from SARS with an incorrect tax invoice, SARS will reject your claim. It might even do a Vat audit on your company to uncover any other Vat problems.
This will cost your company thousands in lost Vat refunds and even possible SARS penalties.
But if you know what the Vat Act says about the correct and acceptable format for a tax invoice you can avoid this problem.
Read on to find out what it says so your business never loses out...
Don't let your business lose out on input tax claims because of 'incorrect' tax invoices
The Vat Act
doesn't prescribe the format of a tax invoice (i.e. whether you must pre-print it or whether you can have an electronic version
). It simply outlines the mandatory information that must appear on every tax invoice. (You can check out the Practical Vat Loose Leaf Service
to find details of these requirements.)
But despite this, we've heard stories of SARS officials trying to dictate the format of tax invoices they'll accept. The Vat Act's legislation doesn't back this up.
So if SARS tells you it won't accept an electronic tax invoice, for example, because it's the 'wrong' format, stand up for your rights.
You also need to know your rights when it comes to SARS auditors inspecting your tax invoices.
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Do your Vat refund in ten simple steps
Calculate your Vat, submit your Vat return form and get your refund back from SARS without any delays when you follow this ten-step action plan.
Here's how to protect your rights against SARS auditors if they inspect your tax invoices
SARS auditors can't tell you your invoice must be printed and not hand-written, for example. The Vat Act doesn't back this statement up!
If you have difficulties with a local SARS office refusing to accept handwritten or electronic tax invoices, refer them to the Vat Act.
Doing this will ensure your company never loses out on input tax claims.
Check out Input Tax 101
for even more information on how to claim input tax from SARS correctly.