As a business owner you want to comply with the rules and regulations of the law.
So you have e-tags in your company cars; this adds to your increasing company travel expenses. And now you have a huge bill from Sanral.
Well, there's a light at the end of the tunnel. You can claim Vat on e-tolls as input tax!
Use the e-toll system to your advantage. Follow our six steps to claim Vat from SARS.
Minimise your Vat payments today
Calculate Vat efficiently and take advantage of little known, legal, Vat saving strategies
Your business can benefit from e-tolls
As a business owner e-tolls must relate to travel expenses of your business only, in order to claim from it. This is in the case of when you use your vehicle to generate an income.
Read on to find out what proof you need to keep in order to prove your input tax claim.
Do you have the correct proof SARS requires?
You need the following documents in order to claim the input tax from SARS:
Toll Fees less than R50 needs a toll slip with 14% Vat inclusive on it;
Tolls fees between R50 and R3 000 you need an abridged tax invoice; and
Tolls fees over R5 000 a full tax invoice is necessary (Section 20(5) of the Vat Act).
Introducing your Input Tax 101 e-Report
Increase your cash flow, minimise your Vat bill and get your Vat refund quicker by becoming an instant input tax expert!
Just one of the checklists you'll find in the Input Tax 101 e-Report could save you R1 500 per month. That's R18 000 per year! And because you know all our information is 100% correct, you won't worry about facing a Vat audit or be liable for thousands of rands in additional penalties.
Follow these four simple steps to help you claim input tax from SARS:
Step # 1: Make sure you have the correct documents according to your toll fees
Step # 2: Submit your claim along with the relevant e-toll documents in the tax period
Step # 3: Get your refund from SARS
Step # 4: Keep all your receipts, invoices or statements showing the e-toll fees paid as proof to SARS for five years, so that you can possibly receive your input tax claim.
Please note: in order to claim input tax if you have a valid tax invoice. A valid tax invoice needs to meet the following requirements:
Tax invoice in clear view;
Name, address and vat registration number of the supplier i.e. SANRAL;
Serial number of the invoice;
The date issued;
The description of the services supplied; and
The amount of the e-toll levied (including Vat).
You might be worried about the financial burden that your business will occur as a result of the e-toll system, but rest assured by the possible savings in taxes that's available.
P.S. It's crucial to retain the necessary documents such as your tax invoices as evidence, otherwise SARS will count back any amounts claimed for Vat purposes. For everything you need to know about error free tax invoices click here…