Overview

VAT vendors are facing a changing landscape in respect of non-compliance issues that are being detected during a VAT audit. The paperwork required to comply with SARS’s verification process is often unavailable and/or incomplete, leading to a revised assessment of the vendor’s VAT liability. 

Vendors do not always understand the timing of certain supplies for VAT purposes, and therefore disclose the resultant output VAT in the incorrect VAT period and sometimes at the incorrect rate. This results in penalties and interest becoming payable to SARS. 

Join us as we examine the VAT provisions that are most commonly misunderstood by taxpayers and audited by SARS. The provisions addressed will ensure the VAT201 form is correctly completed and that the most common problematic transactions in a VAT reconciliation are understood.

Course Content

• Registration as a vendor
  • Claiming the input VAT incurred before registration
• Principal vs agent
  • Reimbursements vs supplies
  • Input VAT on reimbursement of employee expenses, e.g., cell phone and travel
  • Issuing invoices as an agent
  • Supplies between business divisions
• Effect of change in VAT rate on
  • Bad debts
  • Unpaid creditors
  • Overpayments
  • Deregistration of vendor
  • Change of use of assets
• Deemed supplies
  • Insurance payouts – what if you make zero-rated supplies?
  • Company car vs pool vehicle
• Imports and exports
  • Documentation requirements
  • Export of services – when to zero rate
  • Export of second-hand goods
  • Correct disclosure on invoices
• Commercial accommodation
  • What about Airbnb?
  • Which supplies are subject to the 60% rule?
• Output VAT
  • What is the VAT on a deposit?
  • Finance lease vs instalment sale agreement
  • Timing rules for fixed property
• Input VAT
  • Can you claim on marketing events?
  • Employee business travel issues
  • Apportionment: Are you claiming all the input VAT you are entitled to?
  • Paperwork for input VAT on insurance premiums
• Dispute with SARS
  • VAT recon issues
  • Adjusting a VAT return to correct errors
  • Prescription
  • Effect of incorrectly completed VAT return