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What proof of Vat payments must I keep and for how long?

by , 26 May 2014
We get a lot of questions from vendors.

And one that always crops up is about Vat payments.

Most of them want to know how long they must keep proof of their Vat payments and what they must keep.

Read on to find out what Dee Bezuidenhout, one of the writers for the Practical Vat Loose Leaf Service and Independent Vat Consultant says you must do when it comes to proof of Vat payments.

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Errors in Vat invoices could cost you thousands!

Are there any inaccuracies in your Vat invoices? You may be charged a very high penalty!

Click here to find out how to make sure your Vat invoices are 100% legal.

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How long do I have to keep proof of Vat payments?

You must keep proof of Vat payments safe for five years.

Bezuidenhout, the Vat expert behind the Practical Vat Loose Leaf Service says once your payment has gone through; keep your proof of payment in a safe place in case there's a query or error in allocating your payment.

Proof of payment will also come in handy in case SARS decides to audit your company.

Experts at the Accounting & Tax Club say 'your business isn't immune to a SARS audit. If SARS believes something isn't right on your Vat returns, you could face an audit.'

If you don't have proof of payments, you'll find it difficult to prove your innocence.

Take a look at the various types of proof of payment that SARS issues (depending on your payment method) so you can keep it safe.

Here's what to do if you're unsure if you should keep proof of Vat payments.

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Think Vat doesn't apply to your payroll?

You're wrong!

Avoid this common error and keep SARS away from your door at audit time.

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SARS issues the following proof of payment - keep the one that applies to you for five years

#1: Payment method: Cheque
Proof of payment: SARS bank receipt (if paid at Cash Hall); VAT213 (if posted)

#2: Payment method: Postal order
Proof of payment: SARS bank receipt (if paid at Cash Hall); VAT213 (if posted)

#3: Payment method: Payments at bank
Proof of payment: Deposit slip

#4: Payment method: eFiling
Proof of payment: Confirmation slip

#5: Payment method: Electronic transfers (including Internet banking)
Proof of payment: Confirmation slip

There you have it. Now that you know how long you must keep the proof of your Vat payments, make sure you comply.

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