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You are a registered VAT vendor, now what?

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.