Warning: These 3 Vat mistakes could take your business down
Don't let bad Vat habits and sloppiness be the downfall of your business! SARS is as ruthless as it is thorough. So do these things right the first time and you won't have to go through a painful Vat audit. Read on to find out which Vat mistakes to avoid...
SARS sees people making the same Vat mistakes over and over again. And the penalties are as harsh as the Vat audit process!
Don't become a victim of their greed – avoid these Vat mistakes as outlined by 231 Sizzling Vat Tips
Vat Mistake #1: Your turnover doesn't match up
SARS habitually checks whether your Vat return turnover is equal to your financial statement turnover. If your financial statements are higher than you've declared, that means you didn't add Vat to some sales. Make sure these figures are precisely the same.
Vat Mistake #2: You inflate your input tax claims
If you incorrectly or fraudulently reduce your Vat liability, you're basically stealing from SARS. And it doesn't take that lightly! You'll face massive penalties, fees and interest on the SARS revised figure.
Not paying your due Vat is a crime, and it's not worth it! SARS penalties are so harsh, they could take your entire business down.
Vat Mistake #3: You (or your staff) have sloppy invoice habits
You must put both your and your client's Vat numbers on each invoice. If you don't put your client's Vat number on, they can't claim their refund. This small courtesy will keep your clients happy, and if you forget it, your biggest client might walk out the door because of this oversight.
If you watch out for these big Vat mistakes, your business will always be one step ahead of the Vat game.