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Remember these two Vat rules when claiming refunds

by , 06 October 2014
Vat allows you to claim back input tax and optimise your company's cash flow. Unfortunately many Vat vendors get this process wrong and end up incurring SARS penalties instead of Vat refunds.

To help you avoid it, we're revealing two important rules you must remember when claiming your Vat refund...

 

When you want to claim a Vat refund, remember these two rules

 
Rule 1: Tax invoices are the key
 
You can't claim your Vat refund without a tax invoice. You need to get one from your supplier. It must show the amount of Vat you paid on the supplies you bought. This acts as your supporting document for all your Vat refund claims.
 
Use your tax invoices to work out how much input tax you paid on all your supplies and total it together to find out your total refund amount.
 
Here's the second rule you must remember.
 
*********** Reader's choice  ***************
 
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. 
 
 
***************************************
 
Rule 2: Never try claim a Vat refund on zero-rates supplies
 
Zero-rated supplies don't have a Vat charge. This means you can't claim input tax on them. If you try, you're practically inviting SARS in to do a Vat audit on your business. 
 
Following these two rules can help you support your Vat refund claims and avoid potential Vat audits. 
 
PS. If you want to get your Vat refund back from SARS within 21 days, you need to check out the Vat Refund Accelerator. It will give you everything you need to know about correctly claiming your Vat refund from SARS.
 
If you have any question about claiming Vat refunds, visit the Accounting and Tax Club to ask our experts.  
 


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