What SARS auditors will check when auditing your input tax
With recent history, many Vat vendors have overstated their input tax, both mistakenly and fraudulently.
If you claim input tax, your SARS Vat audit is impending.
And when the SARS auditor comes knocking at your door, his top objective is to check the validity and accuracy of your information and documents.
He'll check if:
Your books and records comply with the requirements of Section 55 of the Vat Act;
You didn't claim on exempt supplies;
You were entitled to claim input tax on zero-rated supplies you declared;
Any of your input tax claims were for non-taxable supplies;
Inputs you claim are reasonable and relevant for your trade;
Your tax invoices meet SARS' eight-point requirements;
You apportioned inputs correctly and at the right tax rate (Sections 16, 17 and 20 of the Vat Act); and
You've adjusted input tax for assets which have changed in use.
If you've overstated the input tax
, he'll reverse your input tax
claims. And slap you with fines, penalties and interest.
And the truth is, even if you were entitled to your claim, but don't have the valid documentation, he'll still reverse your claim!
Don't feed SARS' insecurities, or give it more reason to keep its beady eyes on you.
I've got the tool to make sure you satisfy any suspicious SARS Vat
auditor. So the next time he looks through your documents and input tax
claims, you not only know what he wants to see, but you're 100% prepared and can prove his suspicions wrong.
Find out more here