SARS sees people making the same Vat
mistakes over and over again. And the penalties are as harsh as the Vat
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