HomeHome SearchSearch MenuMenu Our productsOur products

Three rules to complete your VAT return correctly and stay under SARS' radar

by , 22 December 2016
Three rules to complete your VAT return correctly and stay under SARS' radarVAT is a 'self-assessment' system. This means you're required to work out if you should be paying money in to SARS, or if you should be getting money back from it.

You do this calculation on a VAT return, called a VAT201 via eFiling at the end of your tax period.

But because of numerous mistakes VAT vendors make, SARS checks the VAT returns from time to time by way of a VAT audit. And if anything's wrong on your VAT return, SARS has a laundry list of offences it will charge you with. And, it will flag you for more regular audits. So it can keep checking up on your mistakes.

So to avoid all this, read on for three rules you must abide by to submit your VAT return correctly. And stay under SARS' radar!

**********
Best-Seller


Are you 100% sure you've covered all your bases when it comes to your VAT return?

All it takes is putting a zero in the wrong place on your VAT return to get in trouble with SARS – and even trigger an audit!

Don't let this happen to you!

Avoid simple yet costly mistakes with this number one resource no business should be without!

   
**********

Three rules to submitting your VAT return correctly

Rule #1: Make sure you have tax invoices for all your input tax claims

I know I harp on this subject a lot and must sound like a broken record. But the tax invoice is the most important document in the whole VAT chain! Make sure you have tax invoices for your input tax claims, and more importantly, make sure they're valid. See chapter T01: Tax Invoices in the Practical VAT Loose Leaf for all the requirements you need for a valid tax invoice.

Rule #2: Fill in the correct blocks
Read the description of each block and make sure you fill in the correct ones!
For example, don't put zero rates (meant for block 2) in at exemptions (block 3).

Also, don't use other blocks you've never used before. By filling in the incorrect blocks, or swopping blocks every tax period, you only put yourself at risk for a SARS audit. And I'm talking about the kind that could result in SARS grabbing money out of your business bank account.

**********
Advertisement

SARS is helping itself to bank accounts all over the country because of one VAT pop-up letter

Did you ignore the VAT pop-up letter that appeared immediately after you submitted your VAT return?

You've just given SARS licence to grab money out of your bank account!

Here's what you need to know...


**********

Rule #3: If you have a refund – check up on it to make sure SARS gives it to you within 21 business days

You read right! If you claim a refund, and you don't owe SARS money on any other taxes, then SARS MUST refund you within 21 working days. This includes doing and finalising their audit!

Just make sure you and your documents are available within those 21 working days. So when you submit your VAT return, start counting the days. And if you've done your part, and the refund isn't in your bank account on working day number 22, then phone the call centre, and tell them you demand your interest.

You'll probably get some sort of stunned silence on the other end, but at least you'll get a case number out of them. Then use that case number in a letter to SARS demanding your interest.

I know there are many of you who have refunds withheld for no reason, and what are you doing about it?

Well now you know the three rules of your VAT return. Here's how to make sure it 100% correct.



Got an impending VAT audit? Get ahead of SARS and make sure you're fully prepared for those unwanted visitors. Find out how here...


Related articles




Related articles



Related Products



Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>