- Tax invoices 101: Here's what's acceptable when it comes to tax invoices
- The following in tax invoices will stand up to SARS' scrutiny
Are there any inaccuracies in your tax invoices?
If SARS asks you to sign this document... STOP! Put down that pen. You have the right to refuse
SARS is very strict when it comes to tax invoices.
For example, you must ensure certain details appear on your tax invoice and you must adhere to certain require... ››› more
- [16 June 2017]
- Is this a valid tax invoice?
- We all know that you can claim input tax for any amount less than R5 000, with an abbreviated, or shortened tax invoice. This means the name, address and VAT number of the buyer doesn't have to appear on the tax invoice. Essentially, it can be made out as 'cash'.
Now have a look at this abbreviated tax invoice below. What do you think is glaringly wrong with it?
*************Errors in your ... ››› more
- [23 March 2017]
- Warning: If you deal with foreign clients but don't use the correct exchange rate on your tax invoices, you'll face hefty penalties
- If you deal with foreign clients, the most important thing you must do is to issue valid tax invoices and use the correct exchange rate.
What we often find is that most Vat vendors fail to do this correctly. As a result, they face harsh penalties.
Keep reading to discover the severity of these penalties so you can avoid them at all costs. We'll also tell you how to apply the right exchange r... ››› more
- [04 November 2016]
- 'Dee - I'd love to attend the VAT Masterclass but I think it's too expensive!'
- When we were taking our bookings for our May 2016 VAT Masterclasses, one of our prospective attendees said they wouldn't attend the VAT Masterclass as it was too expensive.
This got me thinking about costs and the relativity of paying R6 495 ex VAT for the comprehensive 2 day VAT Masterclass course, versus what SARS could charge you if you make a simple mistake on your return.
And then I t... ››› more
- [25 July 2016]
- 1 Common input tax mistake and how to avoid it
- Many believe they've got input tax nailed. But the reality is that unnecessary mistakes continue to be made over and over again. And SARS doesn't take too kindly to these.
If you don't claim your input tax correctly, SARS will not only deny your input tax claim, but they'll also dish out harsh penalties and fines, with interest!
In this article, we'll look at 1 common, yet completely unne... ››› more
- [15 April 2016]
- Dealing with VAT and short-term insurance: What does SARS allow as alternatives to tax invoices?
- Often, when paying commission to insurance brokers, you can't really calculate the amount of the commission, and therefore the amount of the VAT.
Also, what often happens is that by the time you need to claim input tax, you haven't received a tax invoice from the brokers.
So SARS allows you to claim the VAT on commission payments, without a tax invoice from the insurance brokers.
In essen... ››› more
- [22 February 2016]
- VAT Case law: What happens if you can't produce tax invoices for input tax claims?
- Within the VAT chain, the most important link is the tax invoice.
If you claim input tax without it, SARS will bring up an assessment and penalise you very heavily.
Here is a VAT case that shows you what happens if you claim input tax without tax invoices. Read it and see what you can learn from it... VAT Case 789, North Gauteng High Court, 10th September 2012:
In this VAT case, a vendor ... ››› more
- [21 December 2015]
- 3 red flags to look out for when invoicing correctly
- The South African Revenue Service (SARS) provides what are known as Binding General Rule (BGR's).
They help you, as a VAT vendor, know exactly how SARS wants things done.
These BGR's include details on how to deal with tax invoices, otherwise known BGR21.
Now if you don't deal with your tax invoices in the correct way, SARS will deny your tax deduction, so pay attention!
Here are 3 re... ››› more
- [04 December 2015]
- Do you have an 'Isak Engelbrecht' issuing false tax invoices in your company's name?
- I've just had an urgent call from Peter Franck, my Editor-in-chief of the Practical VAT Loose Leaf Service, that I have to share. At his most recent meeting at SARS, Peter learnt about a man named Isak Engelbrecht.
SARS caught Isak issuing false tax invoices to his crooked buddies! Isak's friends would claim the input tax and then split it up amongst themselves. But there was no corresponding ... ››› more
- [22 October 2015]
- Do you issue Tax invoices? Here's what you need to know
- Recently SARS issued Binding General Ruling 21 on invoices. The ruling tells you what details need to be on a tax invoice for it to be valid. It also regulates how to reflect addresses on the invoice.
Continue reading to find out the ten items you need to put on your tax invoice to comply with SARS, so you issue tax invoices correctly every single time.
Ten details every tax invoice must co... ››› more
- [09 July 2015]