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SARS will deny your input tax claim WITHOUT this seven point checklist

by , 06 July 2016
SARS will deny your input tax claim WITHOUT this seven point checklistI was having my regular coffee with Peter Franck, you know, the editor-in-chief for the Practical VAT Loose Leaf Service.

He'd just come back from SARS and looked quite exasperated. Of course, I had to ask him why he had such a long face.

He told me that he was arguing a case for a client who would potentially lose out on a R2.3 million rand input tax claim. All because his client failed to do these seven things.

Let's have a look at the seven things his client should've had on his tax invoice.

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Get your tax invoices right the first time!
Do you know:

  • What a valid Tax Invoice looks like;
  • What information it must have; or
  • When you need a full tax invoice?

Find out here so SARS doesn't deny your input tax claim due to an invalid tax invoice…

Incorrect tax invoices could cost you thousands in denied input tax and penalties!

If your tax invoices are incorrect, not only will SARS deny your input tax like Peter's client, but you could be held liable for penalties, fines and interest. All back-dated from the date of your tax invoice.

And you could face prosecution if the matter goes to court as this constitutes a criminal offense.
So for Peter's client, not only would he lose his R2.3 million, SARS will now charge him a minimum of 200% penalty plus a fine and interest. Instead of him getting R2.3 million from SARS, he now has to pay over R4.6 million to SARS. All because he didn't follow this checklist…
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SARS has put a few surprises in the new VAT return… And they could cost you your refund!

Something as simple as leaving a space instead of putting a zero in column 1A of the new VAT return could cost you your refund!

Are you 100% sure you've covered all your bases?

Find out how you can avoid falling into the traps today!


Checklist: Follow this seven-point tax invoice checklist to get your input tax claim approved by SARS

  • You need a tax invoice if the transaction is for more than R50;
  • Your tax invoice needs to be clearly labeled 'Tax Invoice', 'VAT Invoice', or 'Invoice'. SARS just recently changed the rules. Read more about the correct naming of your tax invoice here; 
  • If the transaction is between R50 and R5 000, you can get an abbreviated tax invoice. If the transaction is more than R5 000, or zero-rated, you're legally obliged to have a full and proper tax invoice. Here's a sample;
  • You must get the tax invoice within 21 days of the sale;
  • Make sure the correct rate is applied.
  • The standard-rated tax invoice has VAT at 14%;
  • The zero-rated tax invoice has VAT at 0%; and
  • For exempt supplies, there is no VAT applicable so there shouldn't be any VAT on your tax invoice.
  • Your tax invoice must be in one of the 11 official languages of this country; and
  • Make sure the tax invoice is in South African Rands.
Peter Franck, the Managing Editor for the Practical VAT Loose Leaf, has listed everything you need to know to claim all your input tax in the Practical VAT Loose Leaf as your main reference to avoid any penalties.
P.S Don't miss out on another input tax claim. For a comprehensive list of common errors to avoid in your tax invoice, check the Practical VAT Loose Leaf! Order it now and if you're not happy, simply return it within 30 days for a full refund.

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