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If your company is guilty of this 'high risk' behaviour, you could trigger a SARS audit

by , 03 June 2014
When you register your business for Vat, SARS asks a number of questions to check whether or not you're a high risk vendor.

This includes questions around where your business is based (local or abroad), the ownership of your business - is it a sole trader, a partnership, a company and where your business is (for example, do you work from home).

What you may not know is that SARS continues to check on you even once you're registered.

That's right.

Once registered, your behaviour as a vendor becomes the deciding factor for SARS to audit you.

Continue reading to find out the type of behaviour that SARS sees as 'high risk' that could trigger an audit.


Errors in Vat invoices could cost you thousands!

Are there any inaccuracies in your Vat invoices? You may be charged a very high penalty!

Click here to find out how to make sure your Vat invoices are 100% legal.


Warning! SARS sees the following behaviour as 'high risk'

  • Repeatedly making your Vat payment late;
  • Repeatedly submitting your Vat returns late;
  • Failing to submit or make Vat payments at all;
  • A sudden drop in gross profit;
  • Constant refunds; and
  • Vat claims that don't add up.

If SARS audits you for this kind of 'high risk' behaviour and does find wrong doing on your part, your business will face harsh penalties and interest.

Here's a word of advice from our tax experts…


Think Vat doesn't apply to your payroll?

You're wrong!

Avoid this common error and keep SARS away from your door at audit time.


The audit process is more stringent than before, make sure you're not guilty of any 'high risk' behaviour

Experts behind the Practical Vat Loose Leaf Service say, with the Tax Admin Act in place, the audit process is more stringent than before. This means you'll face stronger penalties than before if SARS believes something on your Vat returns isn't right.

The best thing you can do is to submit timely and accurate Vat returns. Also make sure you keep proper records to substantiate your claims or prove your innocence if SARS questions you.

There you have it: While your business isn't immune to a SARS audit, you certainly can reduce your chances by staying away from 'high risk' behaviour.

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