After you register for Vat, stick to these three duties
1. Submit your Vat returns and payments on time
After you register for Vat
, SARS allocates a tax
period to you. You have to submit your Vat
returns and account for Vat
according to the tax
period SARS gives you.
Bear in mind that subtracting the input tax
(on purchases) from the output tax
(on sales), in a particular tax
period determines your company's Vat
2. Keep accurate accounting records for five years
Your company must keep accounts of purchases and sales to calculate the Vat
due to SARS. The accounts also give SARS the right to check that you calculate, charge and pay Vat
Here are the records you must keep:
Records of all goods and services your company supplies;
A record of importation and exportation of goods; and
Charts and codes of accounts, an instruction manual on your accounting system and documents that describes your accounting system.
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3. You must also issue valid tax invoices, debit and credit notes
For your tax
invoices to be valid, make sure they contain these details:
The words 'tax invoice' in a prominent place;
A serial number and date for issuing the tax invoice;
A description of the goods or services supplied;
The quantity or volume of the goods or services supplied; and
The value of the supply, amount of tax charged and the consideration for the supply.
Remember, your tax
invoice must show the price and Vat
in South African currency, except where you're dealing with a zero-rated supply. If you charge your customers in a foreign currency, show the rand amount and Vat
Special rules don't only apply to tax
invoices. When it comes to debit and credit notes, the rules are they must have:
The words 'debit note' or 'credit note' in a prominent place;
The name and address of the recipient. If the recipient is a Vat vendor, give his Vat registration number;
The date you're issuing the debit or credit note;
The amount by which you've altered the value of the supply and the Vat charged;
Reasons detailing why you're issuing the note ( SARS wants to know what situation forced you to issue the note); and
Enough information to identify the transaction to which the note refers.
These are just some of your Vat
duties once you register for Vat
. To find out what your other duties are, check out the Practical Vat Loose Leaf Service
so you can comply and avoid SARS penalties.