The 10-minute check that will make SARS pay you
Mike was fed-up with paying SARS large amounts of Vat every time he filled in his Vat return form, which also meant less profit. I offered to do a quick scan of his accounts (this literally took me 10 minutes).
From experience as a Vat advisor, I knew that many accountants, financial advisors and company owners weren't always aware of the many loopholes in the Vat law.
And that's why the first thing I looked at when I opened Mike's books was his company's receipts for goods bought for the office. And I found exactly what I was looking for. In February Mike bought new plants and flowers for the office (they were going green). But here's what interested me: They WEREN'T claiming input tax on it!
And this was just the beginning of my discovery. Mike's company also distributed many promotional gifts. It was their way of marketing the company at big events like golf days and fun runs. And yes, you guessed it: They WEREN'T claiming input tax on these either!
**********About to Sell Out**********
There have been 94 changes to the Vat law in the last six months
These affect how you deal with:
- Input tax;
- Zero Rated goods;
- Apportionment; and more
Do you know them all?
Find out what they are and how to comply at the Vat Masterclass 2015. But hurry, JHB is already about to sell out... Book your seat now...
Meet my friend Mike… Not his Vat problems
Two cups of java later I greeted a very pleased Mike. You see the plants and promotional gifts were just the tip of the iceberg. I gave Mike a copy of the Vat Loose Leaf (my handbook and guide that I used to conduct this quick review) which showed him how to do exactly what I was doing: Identify areas where input tax could be claimed. Mike used his Vat Loose Leaf and learned about nine things that his company could claim for:
1. Plants for the office
2. Flowers for the office
3. Flowers sent to sick staff
4. Wreaths sent o staff whose family members have passed away
5. Medical bills – where you send your staff to the doctor and pay for their medication
6. Promotional gifts – e.g. T-shirts bearing the company's logo
7. Personal subsistence – e.g. your accommodation, meals and drinks when you obliged by reason of your employment to spend a night or more away from home
8. Toll fees; and
9. Parking fees.
Have you been claiming input tax for these things?
If not, I suggest that you start to do so immediately. You see, it's a common misconception that if you buy goods you can eat, enjoy or take home, you can't claim input tax on them. But this is NOT TRUE.
See risk-free what the Vat Loose Leaf can do for your company
Imagine what even more topics with tips such as this one can do for your business? I saved Mike's company from paying excessive Vat. And I can do the same for you.
Find out how to reduce your Vat risk-free by going to this link and read about the personal Vat advisory service that's at arms' reach and how it will help you to eliminate your Vat worries in 2 weeks.