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To avoid a SARS Vat audit, do these three things

by , 31 December 2014
As a Vat vendor, you can't afford to get on the wrong side of SARS. This would trigger a SARS Vat audit that could take months and end in serious fines.

You can avoid this though simply by doing the right things and following the rules.

That's why today, we're revealing three things all Vat vendors must do so you don't trigger a SARS audit...

 

Three things you must do so you don't trigger a SARS Vat audit

 
1. Declare the output tax on fixed property immediately 
If you sell fixed property, you must show the output tax on each payment you receive in the tax period you receive it. SARS will see from the transfer duty forms and the buyer's Vat return when you should've declared the output. Remember, penalties and interest on a property sale can put you out of business!
 
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Do you want to save the trouble of writing and developing your own Vat forms, templates and checklists? 
 
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2. Claim input tax on motor vehicle rental payments as and when you make them
If you obtain a motor vehicle such as a bus (not a motor car, where you can't claim input tax anyway) under a rental agreement, claim Vat on the full rental payments as you make them, but not upfront on the cash cost.
 
3. Always submit your Vat return, even if it's a 'nil return'
SARS regards vendors who often pay their Vat late or don't send in all their Vat returns as high-risk and it earmarks them for audits.
 
Make sure you don't pay your Vat late and that you submit all Vat returns. Don't forget to keep copies of your returns!
 
If you do these three things you can avoid a SARS Vat audit by following the rules.
 
For 11 more tips on how to avoid a Vat audit, check out the Practical Vat Loose Leaf Service
 


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