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To avoid a Vat audit, always do this with your sales figures

by , 02 October 2014
Vat audits are an ever present threat because of the complicated nature of Vat. Vat vendors all too often claim on the wrong thing or don't have the right documents. And SARS loves nothing more to punish you with an audit.

One of the most common Vat errors that leads to an audit is misrepresenting your sales figures.

This gets SARS attention in a bad way and means you could face a Vat audit.

Because no one wants SARS going through their records looking for mistakes, we're explaining how to avoid this error so you can avoid an audit...

 

To avoid a SARS audit you mustn't misrepresent your sales figures

 
To avoid a Vat audit, you must reflect all your sales figures, even if they're zero-rated. 
 
Vendors often fail to show the figures for zero-rated sales (basic foodstuffs, exports, etc). They make this mistake because they believe zero-rated supplies don't have Vat charges on them and therefore, won't affect their Vat claims. This is incorrect.
 
This omission could result in your input tax being too high in relation to your sales – and that's a sure way to attract an audit!
 
But there's one way to ensure you never make this mistake again…
 
*********** Reader's choice  ***************
 
I'd like to tell you how I saved R75 327 in Vat this year. No tricks. No evasion. Just two little things I didn't know I could claim.
 
 
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Here's how to avoid this Vat mistake

 
To avoid this problem, carefully record all your sales figures. When you come across a zero-rated Vat item in your sales, add it to your figures but mark it as zero-rated. 
 
This way you can correctly work out your input tax and claim it back from SARS without triggering a Vat audit.

Ex-SARS auditor reveals: Five red-flags SARS looks for when doing a Vat audit
 
 

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