Yesterday, our Vat team received this email from James: 'I hope I don't owe the taxman. SARS sent me my Vat 201 back to me and I don't know why.
I spent so much time on the return, it can't possibly be wrong. All the data supporting my return was there, even my invoices.
What do I do now?'
Read on to discover what we told him.
How to determine what data you need to submit
Hi James. SARS selected your Vat201 return for verification, that's why you received a request to submit Vat supporting data. It doesn't necessarily mean your Vat 201 is incorrect.
Each return is different, so there's no set list of Vat supporting data to submit. However, you should supply these 14 records.
The 14 records you must keep to satisfy SARS
Evidence of your stock and transactions:
1. Invoices, receipts and register tapes
2. Any records that document all the goods and services you supplied, received and imported for the tax period
3. Stock sheets and control lists
4. Records of any imports you've made, together with all their customs documentation
5. If you have agents who act on your behalf, a list of their details and the transactions they did on your behalf
Evidence of your Vat compliance
6. The rate of Vat you applied to all these supplies
7. Valid tax invoices
8. Any documentation that supports your claim to apply zero rate
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9. Ledgers, cash books, journals and all books of account
10. Debit and credit notes
11. Paid cheques and cheque books
12. Bank statements and deposit slips
13. Debtors and creditors slips
14. The accounting system instruction manuals and system and program documentation so the auditors can understand your systems
So you see James, SARS requesting Vat supporting data doesn't always mean your return was incorrect. Submitting Vat supporting data is nothing to be frantic about.