- Use this legal loophole to claim VAT on your clients' gifts
- You probably buy your clients gifts during the year. But just before you submit your VAT return and miss out on a potential VAT saving, you need to read this first!
You're probably thinking... SARS sees gifts as entertainment and disallows input tax claims from the onset, right? Well... not quite...
During the FSPBusiness VAT Masterclass, I found a secret loophole that's totally legal. And... ››› more
- [09 February 2017]
- Make sure your credit notes have these six items or you'll face the following consequences
- It's simple. If you cancel a tax invoice, you have to issue a credit note.
You also have to claim back the VAT.
If you don't you will probably underpay your VAT and miss out on input tax deductions.
Let's have a look at what must legally be on your credit notes and the consequences you will face if you don't get it right.
But, before I cover that, let's look at why you must issue 'lega... ››› more
- [27 January 2017]
- How to reduce your VAT with business travel input tax claims
- My friend Gordon is one of the directors of an outsourced training company. He's always flying around the country to present training for his company's clients, and often goes on training courses overseas.
He asked me which portion of his travel, subsistence and accommodation costs his company can claim back as input tax, because he doesn't receive a regular subsistence allowance. He simply kee... ››› more
- [19 January 2017]
- Can I deduct the cost of a new laptop for my business?
- There's nothing better than getting money back from SARS. And let's face it, we all want money back. The challenge is keeping track all the little unknown expenses you can legally deduct to get SARS to put more money into your bank account. For example, did you know you can claim the cost of new laptops for your business? If not, you're not alone. One of the subscribers to the Practical Tax Loose ... ››› more
- [14 December 2016]
- Six record keeping tips to claim tax deductions and avoid paying SARS penalties
- SARS wins lots of disputes because taxpayers don't keep accurate records or the correct records.
Keep reading for six record keeping tips you can use to claim deductions and avoid paying penalties. ***************
You can lose a dispute with SARS because of inaccurate record keeping
Make sure this never happens to you!
Hereʼs everything you need to know about successful record keeping... ››› more
- [24 November 2016]
- Don't let SARS disallow your deduction like they did to Moolah (Pty) Ltd
- Moolah (Pty) Ltd had a fantastic year. They made R10 million profit at the end of February 2014. So, on 2 March the shareholders gave the directors a bonus of R5 million.
As it was already March, they accrued for the R5 million bonuses in February 2014 and paid the necessary PAYE. They then actually paid the R5 million in March.
When Moolah submitted their tax return and showed the R5 mill... ››› more
- [15 November 2016]
- The five forbidden items you can't claim input tax on
- The VAT law lets you claim input tax on the supplies you need to buy in order to run your business. But you can't claim input tax on everything.
There are five forbidden items you can't claim on. And if you do, SARS will not only reverse your input tax deductions. They'll also slap you with a 200% penalty, plus interest and fines. And they'll conduct a VAT audit on your business that could go a... ››› more
- [25 August 2016]
- Answer these six questions to see if you can get a deduction of expenditure and losses
- A deduction is an amount SARS lets you deduct from your taxable income, and it's very often the actual expense you've incurred. You can use the full amount of your deduction to reduce your taxable income in the year you incur it, or you can do so over the year it applies to.
That's all good and well, but the real question is: 'How do you know if you can deduct an expense?'
The general answer... ››› more
- [14 June 2016]
- Meet these 3 criteria in order to deduct input tax on entertainment expenses
- When it comes to entertainment expenses, the general rule is that you may not make input tax deductions on them.
Failure to follow this rule can result in the deduction being reversed, alongside a penalty of 10% with monthly interest.
What's more is that SARS can, on top of all that, hit you with an understatement penalty of up to 200%!
But even though that's the case, it's worth noting t... ››› more
- [17 March 2016]
- Do you work from home? Then meet these 3 criteria to qualify for a home office deduction
- Are you a salaried taxpayer who works from home? If so, then you can claim a home office deduction.
But don't get ahead of yourself! Because there come certain criteria that must be met before you can do so.
In other words, you must make sure that you qualify for a home office deduction before going ahead and claiming it in your tax return.
SARS regularly looks into these deductions, and ... ››› more
- [08 March 2016]