Once you are a registered VAT vendor, there are certain basics you need to comply with.
Here we provide you with some great tips:
- All invoices must reflect correct VAT registration numbers for the supplier and receiver of goods and services, including their name and physical address.
- The words ‘Tax Invoice’ must appear on every invoice.
- Find out when you need to submit your VAT return and ensure payment is made within 25 days of the end of your cycle.
- All quotes and invoices must include a VAT line item – even if the VAT rate is 0%.
- It is a criminal offence to inflate your input tax claims to reduce your VAT liability.
- Claim back the VAT paid on irrecoverable bad debts (i.e., the debt has been written off). Ask you accountant about this.
- Ensure that your turnover and financial statements match. SARS will check this.
- Late VAT submissions and payments attract penalties and interest on the amount owed.
- Always submit your VAT returns, even if there is no payment due to SARS.