Basic VAT Do's and Don'ts

Here is a list of basic rules once you become a VAT vendor:

· Find out which VAT cycle applies to your business and submit your VAT return and payment within 25 days of the end of your cycle.

· Late VAT submissions and payments attract penalties and interest on the amount owed, so don’t leave the work to the last minute.

· Include a VAT line item on all your quotes and invoices, even if the supply is classified as zero-rated (this won’t change the final selling price).

· Make sure the words ‘Tax Invoice’ appear on every invoice.

· Be extra cautious not to inflate your input tax claims to reduce your VAT liability – this is illegal.

· Make sure that the revenue you report in your financial statements matches the revenue you’ve declared on your VAT returns.

· Always submit your VAT returns, even if there’s no VAT due to SARS.

· All your invoices must include your VAT number and that of your customer if they are a registered VAT vendor. You must also include their name and physical address.

· VAT must be charged on any commissions earned or paid.

· If you have an irrecoverable bad debt that’s been written off, you can claim back any VAT already paid to SARS for the invoice in question.

Contact us For assistance with VAT registration and VAT return submission.