You need to be even more cautious about the records you keep now that the Tax Admin Act (TAA) is in effect.
According to the Practical Vat Loose Leaf Service, you must keep records that:
Your company records must assist SARS auditors with the following two functions…
When you're deciding which records to keep, they must serve a defined purpose and assist SARS auditors with the following two functions:
Not sure which records to keep?
Here's a checklist to help you determine the types of records to keep
Remember, your records must be available for inspection by SARS for up to five years and you must keep them in a format that's easy to access. This means they must be open and available for SARS if they come knocking!
The bottom line: You have a duty to keep your company records. Record-keeping is the most important aspect of your Vat management strategy as your records are the proof you need to substantiate your claims and returns to SARS.
So make sure your records fulfill the two functions we've mentioned.
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