Not sure what SARS auditors will check when they perform a Vat audit? This checklist will help you prepare

Simangele Mzizi, Fsp Business, 04 Sep. 2014

Tags: vat, vat audits, sars, prepare for vat audit

Experts behind the Practical Vat Loose Leaf Service say if your business hasn’t been audited in the last five years, you’re next.

Why are they so sure?

According to the experts, SARS has strengthened random selection for audits. This means even if you do everything right, SARS auditors will randomly select you for an audit. In some cases, SARS doesn’t even have to notify you that it’s arriving!

So what can you do?

The best thing is to always be prepared. This way, you’ll know what to expect and you’ll ensure your Vat affairs are in order.

Your preparation should include knowing what SARS auditors will check when they perform a Vat audit. Here’s a checklist to help you with this.

*********** Product endorsement ************
Get the Practical Vat Handbook on your computer

Click here to enjoy the convenience of being able to access the Digital Practical Tax Handbook anywhere


Use this checklist if you’re not sure what SARS auditors will check when they perform a Vat audit

According to the Practical Vat Loose Leaf Service, SARS auditors will check the following things:

#1: Individual totals on the VAT201 return. They’ll compare it to your general ledger and summary.

#2: The Vat control account. They’ll review this to assess possible risks and the effectiveness of the accounting system you use.

#3: Vat penalties/interest. The auditors will determine if the Vat penalties/interest were added back, i.e. not claimed as a tax deduction.

#4: Tax invoices. Auditors will scrutinise some of your tax invoices to ensure they’re valid.

#5: Outputs and debtors. The auditors will ensure the completeness of outputs and also check debtors.

#6: The exact classification of trade. SARS auditors will check the exact type of enterprise you’re running.

#7: Previous audits. A record of previous audits and results won’t escape SARS’ scrutiny.

#8: The type of supplies you make. SARS will check the type of supplies you make (taxable, exempt, zero-rated) and their proportions.

#9: The history of your Vat refund claims. Auditors will look to see whether or not you submit returns and payments regularly.

#10: Assets and liabilities. SARS auditors will question the value of your assets and liabilities at the time of registration.

#11: Capital assets. The capital assets you acquired will also be of interest to the auditors.

Now that you know the things SARS auditors will check when doing a Vat audit, make sure you’re prepared and that all your Vat affairs are in order. Remember, they could come knocking on your door anytime.

Related articles:




RSS Facebook Share the experience
Accounting and Tax

  • Accounting
  • Allowances and deductions
  • Audit/Assessment
  • Capital gains tax
  • Dividends
  • Donations Tax
  • Exports and imports
  • Fringe benefits
  • Input tax
  • Provisional tax
  • Sars
  • Tax basics
  • Tax invoices
  • Tax returns
  • Vat basics
  • Vat registrations
  • Vat return
Premium Services
  • Company Registration
  • Objections
  • PAYE
  • Trusts
  • Turnover Tax
  • UIF
  • Wear and Tear
how to get my tax number online[read more]
Published on 16 Feb. 2018 1 answer
Need some help on correcting payslips taken over from outsourced payroll person. As soon as the company pays ANYTHING...[read more]
Published on 06 Feb. 2018 1 answer
Dear Sir, Please advise the CGT calculation in the following scenario: Close corporation with one member purchased...[read more]
Published on 18 Jan. 2018 1 answer
Video Archive Video club

Your library of Free eReports
View full library
SARS Tax Tables 2016/2017 Download

Simply click download for your FREE SARS Tax Tables 2016/2017 to ensure you calculate your tax correctly.