HOW TO: Ensure your VAT Return / Refund is correct.
Dot your i's and cross your t's when you work with VAT and SARS.
It’s better to be correct the first time, than trying to sort out VAT with SARS afterwards.
First of all, ensure you issue a Valid Tax Invoice to all your customers.
Pop over to www.thebookkeepingcompany.co.za for a template of a Valid Tax Invoice.
Second of all ensure you receive a Valid Tax Invoice from all your suppliers.
Make sure all your suppliers have your correct details.
4 Ways to ensure you have all your details on hand at the time of purchasing.
No 1. Have a business card with your details - now this can be separate to your normal business card. It could be a two-sided business card, on the back you would have all details that need to go on your supplier invoice.
No 2. Have a laminated card like your library card, that you pull out every time you buy something.
No 3. Everything is digital these days, have a digital business card. You can then whats-app it, sms or email it to your suppliers. This ensure’s they have the correct details.
No 4. Have a stamp made with all your details on.
Your big retail shops i.e Makro that you have a card for, you can update with your Valid Tax Invoice details. It will then print on your till slip.
It’s very important to make sure that your company details match to what you have registered with SARS.
Now for the fun, when submitting a claim for refund from SARS, you will need the following:
- Letter from SARS requesting verification (available on efiling).
- Only if you get a notification of one, but lately they are verifying all refunds.
- 5 of your highest sales invoices (customer invoices)
- 5 of your highest suppler invoices (creditors invoices)
- VAT Report (printed off your accounting software)
- For exporter’s you will need a few extra documents.
- Bill of entry, customs release documents, all shipping documents.
The turn-around for the verification is 30 calendar days. So, the quicker and correct your documents are, the quicker you will receive your VAT refund.
Thank you for reading this article - Need any help with submitting the actual return or any of the above please do not hesitate to contact me. firstname.lastname@example.org, 082 403 0792 or follow me on Facebook
The Bookkeeping Company