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Made a mistake on your Vat refund? You'll face these two consequences

by , 27 October 2014
Vat refunds are a huge advantage for Vat vendors. They you give your company extra cash flow to help you run your day-to-day business.

But if you make a mistake when you claim your Vat refund, you'll face exactly the opposite.

SARS has strict rules about claiming Vat refunds and it won't hesitate to slap you with penalties for your error.

In fact, there are two serious consequences of making a Vat refund error.

Read on to find out what they are...

 

A mistake on your Vat refund will have the following consequences

 
SARS can hit you with penalties that include a fine of up to 200% and can also levy interest at the prescribed rate. 
 
But that's not the worst of it. 
 
SARS can even imprison you for up to two years if you don't comply with Vat laws or five years if it can prove tax evasion! 
 
Here are three of the most common Vat refund mistakes that could land you in this kind of trouble with SARS.
 
*********** Hot off the press  ************
 
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. 
 
 
*************************************
 

Don't make these Vat refund mistakes to avoid trouble with SARS

 
You'll end up in a great deal of trouble with SARS if you:
 
Claim non-existent amounts of input tax;
Claim input tax that you can't verify; or 
Make a claim you don't have complete documentation for.
 
SARS sees all of these errors as fraud and it will either penalise you with a fixed penalty, interest and an additional non-compliance penalty, or bring criminal charges against you if it's a serious case of fraud. 
 
To ensure this never happens to you, always check your Vat documents to ensure you qualify for a refund, calculate it correctly and have the right documents to prove it. 
 
Check out the Vat Return Accelerator for more on Vat refunds to ensure you never incur the wrath of SARS. 
 

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