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Your business isn't immune to a SARS audit! Use these three tips to ensure you have everything in place

by , 03 June 2014
If SARS believes something isn't right on your Vat returns, your company could face an audit. SARS could also randomly select your business for an audit.

Since you don't know when SARS will come knocking on your door, it's best you're always prepared.

How do you do this?

Our Vat experts recommend you use these three tips to ensure you have everything in place for an audit.

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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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Three useful tips to help ensure you're prepared for an audit
 

#1: Keep accurate records of your output tax claims

Experts behind the Practical Vat Loose Leaf Service say, SARS will definitely want to see your tax invoices – both sales and purchases! If you don't have valid tax invoices, SARS will penalise you.

Remember, tax invoices aren't called 'the key to smooth Vat operations' for nothing.

In addition to tax invoices, you also need to keep documents like credit notes, debit notes, bank statements, deposit slips, stock lists and paid cheques.

SARS wants proof of everything. If you can't prove something, you'll be in serious trouble.

#2: Keep notes of your Vat calculations

SARS gets very suspicious when things just don't add up. That's why you must keep notes or calculations that show how you arrived on the figures on your Vat return.

And here's another useful tip for you…
 

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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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#3: Keep the accounting charts and codes you use

In addition to charts, also keep:

  • The accounting system's manuals;
  • A list of your outstanding debtors and creditors if you're using the payments accounting basis;
  • Proof of your entitlement to apply the zero-rate; and
  • A record of all imported goods with support documents.

There you have it. If you apply these audit tips, SARS audits won't stress you out. You'll have everything ready when SARS asks for it.



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